A Company with Fixed Costs of $10,000 Per Month Has

question 37

Multiple Choice

A company with fixed costs of $10,000 per month has a target price of $165 for their sole product, a heat shield for masonry fireplaces. What level of output represents their break-even point if their variable cost for producing is $35 per unit?

• A)between 60 and 70 units
• B)between 70 and 80 units
• C)between 80 and 90 units
• D)between 90 and 100 units

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Definitions:

Media

Various channels and platforms used to convey information or entertainment to large audiences, including print, broadcast, and digital formats.

Right Audience

The specific group of consumers at whom a company aims its products and services, believing they are most likely to buy them.

Right Message

Refers to the creation and delivery of appropriate and targeted communication that resonates with a specific audience.

Gross Rating Points (GRP)

Measure used for various media advertising—print, radio, or television; GRP = Reach × Frequency.