A New Product Is Being Considered That Will Require $45,000

question 4

Multiple Choice

A new product is being considered that will require $45,000 in fixed costs per year.Variable costs per unit are estimated to be $12.72.The firm wants to break even if 8000 units are produced and sold per year.What should be the price?

• A) Less than $16.00
• B) Between $16.00 and $16.99
• C) Between $17.00 and $17.99
• D) Between $18.00 and $18.99

---

Definitions:

Industry Guides

Publications or documents issued by regulatory bodies that provide compliance guidelines for specific industries.

Consumer Laws

Regulations designed to protect the rights of consumers and ensure fair trade, competition, and accurate information in the marketplace.

FTC Commissioners

FTC Commissioners are officials appointed to the Federal Trade Commission, responsible for enforcing antitrust and consumer protection laws in the United States.

Year Terms

Fixed periods of time, often used in contracts and employment agreements, that are designated in terms of years.