How Many Widgets Would a Company Have to Sell If

question 45

Multiple Choice

How many widgets would a company have to sell if their initial investment was $60,000 and widgets sold for $25? Materials to produce 100 widgets cost $1000.Direct labor costs $2.50 per widget.Total indirect costs & overhead is 10% of the selling price.

• A) 4,800
• B) 6,000
• C) 8,000
• D) 8,142
• E) Not enough information to calculate.

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