If TechCor Has Fixed Costs of $60,000, Variable Costs of $1.20/unit

question 69

Multiple Choice

If TechCor has fixed costs of $60,000, variable costs of $1.20/unit, a sales price/unit of $7, and depreciation expense of $25,000, what is their cash breakeven in units?

• A)6,034 units
• B)11,458 units
• C)12,375 units
• D)45,833 units

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Definitions:

Prescriptive Analytics

The set of analytical techniques that yield a best course of action.

Maximize

To increase or make as large or great as possible, often used in the context of mathematical optimization.

Minimize

To reduce to the smallest possible amount or degree.

Constraints

Restrictions or limitations on the variables of a problem which define the conditions or boundaries within which a solution must be found.