A Producer with Only One Product Has Total Fixed Costs

question 127

Multiple Choice

A producer with only one product has total fixed costs of $15,000 per month.In addition,it cost the producer $100 in variable costs to produce each unit of her product (raw materials and direct labor cost) .The producer charges her wholesalers $125 per unit.How many units of the product does the producer have to sell each month in order to break even?

• A)450 units
• B)500 units
• C)550 units
• D)600 units
• E)650 units

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