Rex's Doughnuts Can Produce Only 100 Doughnuts a Day

question 62

Multiple Choice

Rex's doughnuts can produce only 100 doughnuts a day. The variable cost incurred per unit is $2 and fixed costs incurred per day is $500. At what price should a doughnut be sold to break even?

• A) $10
• B) $5
• C) $7
• D) $4
• E) $8

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Definitions:

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing most of the eye's focusing power.

Lens

A piece of transparent material with at least one curved surface, which refracts light rays to converge or diverge them, commonly used in glasses and cameras.

Iris

The colored part of the eye that controls the size of the pupil and, consequently, the amount of light that enters the eye.

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time.