Given the Following Make-Buy Information, What Would Be the Break-Even

question 36

Multiple Choice

Given the following make-buy information, what would be the break-even point? Make Option
Buy Option
Fixed Costs
$15000
$1250
Variable Costs
$ 5
$ 10

• A)917 units
• B)2875 units
• C)1083 units
• D)2750 units

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Definitions:

Guidelines

Guidelines are recommendations or principles that aim to streamline certain processes or set standards.

Risk and Return

A financial concept indicating that the potential return on any investment is directly correlated with the level of risk taken.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Statement of Cash Flows

A document that outlines the effect of changes in income and balance sheet accounts on cash and cash equivalents, divided into sections for operating, investing, and financing activities.