Using the Following Unit Data for a Company That Produces

question 191

Multiple Choice

Using the following unit data for a company that produces Product A and B, what is the breakeven point (round properly) when fixed costs total $175,000?

• A)659 Product A; 556 Product B
• B)792 Product A; 352 Product B
• C)849 Product A; 849 Product B
• D)2,574 Product A; 1,144 Product B

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Definitions:

Total Economic Costs

The sum of explicit and implicit costs representing the total resources expended in the production of goods or services.

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The total value of goods and services produced by an economy, adjusted for inflation, reflecting the actual physical volume of production.