Lamar Has the Following Data -
How Many Units Must Lamar Produce and Sell in
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question 77

Multiple Choice

Lamar has the following data:
$$\begin{array} { l l } \text { Selling Price } & \$ \quad40 \\\text { Variable manufacturing cost } & \$\quad 22 \\\text { Fixed manufacturing cost } & \$ 150,000 \text { per month } \\\text { Variable selling \& administrative costs } & \$ \quad 6 \\\text { Fixed selling \& administrative costs } & \$ 120,000 \text { per month }\end{array}$$
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How many units must Lamar produce and sell in order to break-even?

• A) 8,333 units.
• B) 12,500 units.
• C) 15,000 units.
• D) 22,500 units.

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An aspect of intelligence involving the ability to adapt to, shape, or select environments, solving everyday problems through practical reasoning and experience.

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