A Company Faces Fixed Costs of $100,000 and Variable Costs

question 128

Multiple Choice

A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even?

• A) 20,000
• B) 25,000
• C) 30,000
• D) 35,000
• E) 40,000

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Definitions:

Paraphrase

The act of rewording or rephrasing a text or statement to achieve clearer understanding without changing its original meaning.

Direction

Guidance or instructions on how to perform a task or reach a destination; also refers to the course along which someone or something moves.

Meaningless

Lacking in purpose, value, or significance.

Basic Listening Sequence

A structured method of active listening that involves various techniques such as paraphrasing, reflecting feelings, and summarizing to enhance understanding and communication.