A Manufacturer of Tiling Grout Has Supplied the Following Data

question 204

Multiple Choice

A manufacturer of tiling grout has supplied the following data: The company's break-even in unit sales is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) 272,308
• B) 98,333
• C) 92,055
• D) 60,488

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Quantity

The amount or number of a material or immaterial good considered as a discrete unit or in total.

AVC

Average Variable Cost, which is the variable cost per unit of output, including costs that change with production volume.

ATC

Average Total Cost (ATC) refers to the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.