Spruce Pine Mfg

question 102

Multiple Choice

Spruce Pine Mfg. Co. has total fixed costs of $300,000 a year. The owner estimates that average variable costs for its product will be about $30 next year. The selling price to wholesalers will be $50. The break-even point is:

• A) 6,000 units.
• B) 10,000 units.
• C) 12,000 units.
• D) 15,000 units.
• E) None of these alternatives is correct.

---

Definitions:

Technological Environment

The aspect of the external business environment that relates to the development, availability, and application of technology affecting businesses.

Extensive Customization

Extensive customization refers to the process of tailoring products, services, or experiences to meet the specific needs or preferences of individual customers, often involving significant modifications.

Global Trade

Refers to the exchange of goods, services, and capital across international borders, driven by the aim of accessing new markets and leveraging global efficiencies.

Economic Communities

Groups of countries or regions that band together to form closer economic ties, typically through trade agreements and shared regulations.