The Break-Even Quantity for a Certain Kitchen Appliance Is 6000

question 57

Multiple Choice

The break-even quantity for a certain kitchen appliance is 6000 units.The selling price is $10 per unit,and the variable cost is $4 per unit.What must be the fixed cost to break even at 6000 units?

• A) Less than $35,000
• B) Between $35,000 and $40,000
• C) Between $40,001 and $45,000
• D) Above $45,000

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Definitions:

Overseas Production

The manufacturing of goods in a country different from where the products are sold, often to take advantage of lower labor costs or other economic conditions.