A Five-Pound Bag of Roasted Peanuts Sells for $8, and the Average

question 146

Multiple Choice

A five-pound bag of roasted peanuts sells for $8, and the average variable cost is $4 per bag. If the total fixed cost for the roasted peanuts is $80,000, the breakeven point in bags is:

• A) 20,000
• B) 40,000
• C) 80,000
• D) 120,000

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