WidgetMaker Has Discovered That Its Fixed Costs Are $100,000 Per

question 54

Multiple Choice

WidgetMaker has discovered that its fixed costs are $100,000 per month.If WidgetMaker sells its widgets for $35 per unit based upon a cost of $15 per unit to manufacture (variable costs) then how many widgets per year must WidgetMaker sell in order to break-even?

• A) 5,000
• B) 34,286
• C) 60,000
• D) None of the above

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Definitions:

Well-Informed

Having access to all necessary information to make educated decisions or opinions on a particular matter.

Labor Productivity

A measure of the economic output per hour of labor worked.

Health Care Industry

The sector that provides medical services, manufactures medical equipment, and develops pharmaceuticals, encompassing providers like hospitals and doctors.

Wages

Wages represent the compensation paid to employees for their labor, usually expressed as an hourly rate or annual salary, and are a key factor in employment agreements.