A Pottery Manufacturer Is Conducting a Breakeven Analysis

question 144

Multiple Choice

A pottery manufacturer is conducting a breakeven analysis. Its line of strawberry pots has $18,000 in fixed costs. The fixed-cost contribution is $3. The pottery manufacturer must sell which of the following number of units to break event?

• A) 1,000
• B) 3,000
• C) 6,000
• D) 10,000

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Definitions:

Quotas

Limits set on the quantity of goods that can be imported or exported during a given time frame, often to protect domestic industries.

European Union

A political and economic union of 27 member states that are located primarily in Europe, aimed at fostering economic cooperation and integrating its members' economies.

Tariffs

Taxes imposed on imported goods, often used to protect domestic industries from foreign competition or to generate revenue.

Imported Bananas

Refers to bananas that are grown outside of the market country and then brought in through the importation process.