A Company Faces Fixed Costs of $100,000 and Variable Costs

question 128

Multiple Choice

A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even?

• A) 20,000
• B) 25,000
• C) 30,000
• D) 35,000
• E) 40,000

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Definitions:

Put-Downs

Negative comments or criticisms aimed at belittling or demeaning someone.

Defensive

A psychological or behavioral state characterized by a heightened sensitivity to criticism and a tendency to justify one's actions or beliefs in the face of perceived threat.

Disjunctive

Relating to or involving a choice between mutually exclusive possibilities or a situation that requires a selection to be made from among such possibilities.

Injunctive

Pertaining to an order or directive issued by an authority, often legal in nature, requiring specific actions to be taken or avoided.