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

question 89

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 what dollar sales per year must WidgetMaker sell in order to break-even?

• A) $175,000
• B) $1,200,000
• C) $2,100,000
• D) none of the above

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