Solve the Problem. -Northwest Molded Molds Plastic Handles Which Cost $0.50 Per Handle

question 108

Multiple Choice

Solve the problem.
-Northwest Molded molds plastic handles which cost $0.50 per handle to mold. The fixed cost to run the molding machine is $7200 per week. If the company sells the handles for $3.50 each, how many handles must be
Molded and sold weekly to break even?

• A) 1800 handles
• B) 14,400 handles
• C) 1600 handles
• D) 2400 handles

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Definitions:

Real GDP

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices.

Aggregate Supply Curve

A graphical representation in economics that shows the total quantity of goods and services that producers are willing to supply at various price levels.

Aggregate Demand

The all-encompassing demand for every good and service within an economic framework, calculated at a set aggregate price level for a specific period.

Real Output

The total value of all goods and services produced by an economy, adjusted for inflation, reflecting the actual productivity.