A Manufacturer Is Trying to Determine Its Break- Even Volume

question 12

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

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Definitions:

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