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

question 128

Multiple Choice

A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even?

• A) 20,000
• B) 25,000
• C) 30,000
• D) 35,000
• E) 40,000

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Definitions:

Biodiversity

the variety and variability of life forms within a given ecosystem, region, or the entire Earth.

Wind-resistant Trees

Wind-resistant Trees are species of trees that have adapted to withstand high winds, often featuring flexible trunks, deep root systems, and strong branches.

Regenerating

The process of renewal or restoration of a biological system or part thereof to its original state.

Mature

Refers to an organism or entity that has reached full growth or development, or to ideas and plans that are fully thought out and ready for implementation.