A Company Faces Fixed Costs of $100 000 and Variable Costs

question 66

Multiple Choice

A company faces fixed costs of $100 000 and variable costs of $8.00 / unit.They plan to directly sell their product to the market for $12.00.How many units must they produce and sell to break even?

• A)20 000
• B)25 000
• C)40 000
• D)50 000
• E)not enough information to calculate

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