Location Choice I Has Monthly Fixed Costs of $100,000 and Per-Unit

question 59

Multiple Choice

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?

• A)30,000 units
• B)25,000 units
• C)40,000 units
• D)50,000 units
• E)60,000 units

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.

Statement of Financial Position

A financial statement that shows an entity's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial condition.

Disclosed and Reconciled

The process in which financial activities are explained in detail and discrepancies between different accounts or reports are resolved.