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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Definitions:

Measurement

The process or act of determining the size, length, or amount of something, typically using a specific device or system of notation.

Variable

An element, feature, or factor that is likely to vary or change.

Observations

Data collected or measured during an experiment or survey.

Measurements

Measurements refer to the size, length, or amount of something, determined through quantitative comparison with a standard unit.