Spruce Pine Mfg

question 231

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)20,000 units.

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Definitions:

Matter of Fact

A statement that is based on factual information or evidence, undistorted by emotion or personal prejudice.

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Personal beliefs or judgments that are not necessarily based on fact or knowledge.

Consumer Research

The study of how people buy, use, and dispose of products and services, including their motivations and decision processes.

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Describes products or services that are promoted extensively through various media channels to enhance visibility and consumer awareness.