A Company Is Considering Producing an Item That Can Be

question 5

Multiple Choice

A company is considering producing an item that can be sold for $37.50 per unit.If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35.00 then the break-even volume for this item is

• A)6,000 units
• B)6,429 units
• C)72,500 units
• D)90,000 units

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