A Printing Company Determines That to Print a Large Format

question 220

Multiple Choice

A printing company determines that to print a large format poster it costs $75 to set up the production process. Each poster that is printed costs $25 in material and labor. The printing company sells these posters to marketing firms for $58 each. Determine the number of posters the printing company must sell to break even. [Note: profit = revenue - cost]

• A) 75 posters
• B) 0 posters
• C) 3 posters
• D) 2 posters
• E) 33 posters

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Definitions:

Outsourcing Contract

A legal document that outlines the terms and conditions under which a company contracts out parts of its business processes or services to a third-party provider.

Managing Outsourcing

The process of overseeing and coordinating contracts with external organizations to perform certain business functions or tasks.

Cost-Benefit Analysis

The relationship between the costs of a program and its benefits.

Monitoring

This is the process of systematically observing systems, processes, or projects to ensure they are proceeding as planned and to address any issues that arise.