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:

Controlled Processes

Cognitive activities that require deliberate, intentional, and conscious effort in order to be carried out.

Conscious Effort

A deliberate and purposeful exertion of mental or physical energy to achieve a specific goal.

Circadian Rhythm

The natural, internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.

Serotonin

A neurotransmitter involved in many functions, including mood regulation, appetite, and sleep. Imbalances in serotonin levels are associated with depression and other mood disorders.