A Manufacturer Is Trying to Determine Its Break-Even Volume

question 119

Multiple Choice

A manufacturer is trying to determine its break-even volume.With fixed costs of $100,000,a variable cost of $10,and expected sales of 50,000 units,what should the manufacturer's unit cost be to break even?

• A) $10
• B) $12
• C) $16
• D) $20
• E) none of the above

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Definitions:

Longevity

The length of an individual's life, often explored in the context of factors that contribute to a prolonged life span.

Selective Optimization

A strategy focusing on maximizing performance in some areas through the selection and optimization of resources, while minimizing losses in other areas.

Compensation

A concept that refers to making up for a deficiency in one area by excelling in another, or a payment made to someone for loss or suffering.

Healthy Approach

A method or strategy focused on promoting well-being and preventing diseases, involving balanced nutrition, regular physical activity, and mental health care.