Assume a Fixed Cost for a Process of $120,000

question 17

Multiple Choice

Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break even?

• A) 5,000 units
• B) 6,000 units
• C) 8,000 units
• D) 11,000 units
• E) 12,000 units

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Definitions:

Opechancanough

A Powhatan chief who led a series of conflicts known as the Powhatan Wars against English settlers in Virginia during the early 17th century.

Surprise Attack

A military tactic involving an unexpected assault on an unprepared enemy, aimed at gaining a strategic advantage.

Virginia

A state in the southeastern United States, known for its significant history in the founding of America, including being the site of the first permanent English settlement in Jamestown.

Maryland's Founder

Refers to George Calvert, 1st Lord Baltimore, who played a pivotal role in the founding of the Province of Maryland as a haven for English Catholics.