Angel Toys Is a Producer of Tiny Dolls for Children

question 5

Multiple Choice

Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure: $\begin{array}{ll}\text { Selling price per doll }&\$8.00\\\text { Variable costs per doll: }\\\text { Production (manufacturing costs) } & \$ 1.20 \\\text { Selling and administration (non-manufacturing costs) } & \$ 0.40\\\text { Total fixed costs: }\\\text { Production (manufacturing costs) }&\$ 40,000 \text { per year }\\\text { Selling and administration (non-manufacturing costs) }&\$ 32,000 \text { per year }\end{array}$ In which range does the break-even point fall?

• A) Between 5,000 and 6,000 units
• B) Between 6,000 and 7,000 units
• C) Between 10,000 and 11,000 units
• D) Between 11,000 and 12,000 units

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Definitions:

Provider's Schedule

The planned timetable detailing the availability and appointment slots of a healthcare provider or professional.

Evening Hours

The period of time from late afternoon until night, generally seen as a time of relaxation or leisure activities.

Flexibility

The quality of being able to bend easily without breaking; adaptability or willingness to change.

Medical Facility

An establishment that provides medical examinations, treatments, and other healthcare services.