Texas Products Inc

question 73

Multiple Choice

Texas Products Inc.has a division which makes burlap bags for the citrus industry.The unit has operating fixed costs of $10,000 per month,and it expects to sell 42,000 bags per month.If the variable cost per bag is $2.00,what price must the division charge in order to break even?

• A) $2.24
• B) $2.47
• C) $2.82
• D) $3.15
• E) $2.00

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