Use the Following to Answer the Questions Below

question 73

Multiple Choice

Use the following to answer the questions below.
A proposal for implementing a new product line has an annual fixed cost of $60,000, variable cost of $35 per unit of output, and revenue (selling price) of $55 per unit of output.
-Refer to the instruction above. What is the break-even quantity?

• A) 2,000 units per year
• B) 3,000 units per year
• C) 6,000 units per year
• D) 20,000 units per year

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Definitions:

Showrooming

The practice of visiting a store or stores in order to examine a product before buying it online at a lower price.

Best Price

The most favorable financial term offered on a product or service, often considered the lowest price offered among competitors.

Physical Store

A brick-and-mortar location where businesses sell their products or services directly to customers in person.

Near Field Communications

A set of communication protocols that enable two electronic devices, one of which is usually a portable device such as a smartphone, to establish communication by bringing them within a short distance of each other.