A Producer with Only One Product Has Total Fixed Costs

question 187

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 his product (raw materials and direct labor cost) . The producer charges his wholesalers $125 per unit. What is the sales amount to break even?

• A) $70,000
• B) $75,000
• C) $80,000
• D) $85,000
• E) $90,000

---

Definitions:

Subjective Norms

Subjective norms refer to an individual's perception of social pressure to perform or not perform a particular behavior.

Perceived Behavioral Control

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Perceived Behavioral Control

An individual's belief in their capability to execute behaviors necessary to produce specific performance attainments.

Behavioral Intention

A person's predisposition towards performing a certain action, influenced by personal attitudes and societal norms.