Lamar Has the Following Data -
How Many Units Must Lamar Produce and Sell in
\text

question 77

Multiple Choice

Lamar has the following data:
$$\begin{array} { l l } \text { Selling Price } & \$ \quad40 \\\text { Variable manufacturing cost } & \$\quad 22 \\\text { Fixed manufacturing cost } & \$ 150,000 \text { per month } \\\text { Variable selling \& administrative costs } & \$ \quad 6 \\\text { Fixed selling \& administrative costs } & \$ 120,000 \text { per month }\end{array}$$
-
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.

---

Definitions:

Scatterplot

A type of data visualization that uses dots to represent the values of two different variables, allowing the relationship between them to be observed.

Golf Ball

A small, hard ball used in the game of golf, typically white and covered with dimples to reduce air resistance during flight.

Bounce Height

The vertical distance a dropped object reaches after rebounding off a surface, often used to measure elasticity or energy efficiency.

Residual

The difference between observed values and expected values in statistical models, indicating the error in predictions.