A Firm Sells Two Products

question 112

Multiple Choice

A firm sells two products. Product A sells for $100; its variable cost is $40. Product B sells for $150; its variable cost is $75. Product A accounts for 70 percent of the firm's sales, while B accounts for 30 percent. The firm's fixed costs are $1 million annually. Assume the firm operates 300 days per year. How many dollars of sales does the firm need to generate per day to break even?

• A) $1,754,386
• B) $5,848
• C) $3,333
• D) $2,325,581
• E) $7,752

Understand the definition and implications of secularism in societal contexts.

Recognize and analyze the growth trends of religious groups in Canada and their potential societal impacts.

Understand the criteria that distinguish human language from animal communication systems.

Recognize various linguistic concepts such as entailment, synonymy, ambiguity, and anomaly.

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Definitions:

Assumed Liability

Liability that a party takes on voluntarily from another party, often seen in business acquisitions where the buyer takes on liabilities of the seller.

Creditors

Individuals or entities to whom money is owed by a debtor.

Promotional Campaign

A coordinated series of marketing messages and activities aimed at generating awareness or stimulating demand for a product or service.

Competitors' Strengths

The unique advantages or positive attributes that competitors possess, which can include superior technology, market position, or customer service.