The Total Fixed Cost of Production in a Manufacturing Company

question 9

Multiple Choice

The total fixed cost of production in a manufacturing company is $50,000.The company sells its products at $15 and the variable costs associated with each unit sold is $10.Calculate the level of production at which the firm breaks even.

• A)15,000 units
• B)10,000 units
• C)5,000 units
• D)1,000 units
• E)20,000 units

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Definitions:

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Knowledge Framework

A structured system of understanding that organizes and categorizes information or concepts to facilitate learning and comprehension.

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