Lewis Production Company Had the Following Projected Information -What Is the Break-Even Point in Units?
A)2,000 Units
B)3,333

question 39

Multiple Choice

Lewis Production Company had the following projected information: $\begin{array}{llr} \text { Selling price per unit } &\$150\\ \text {Variable cost per unit } &\$90\\ \text { Total fixed costs } &\$300,000\end{array}$

-What is the break-even point in units?

• A)2,000 units
• B)3,333 units
• C)5,000 units
• D)60,000 units

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Definitions:

Plant Capacity

The maximum output that a manufacturing facility can produce under normal conditions over a certain time period.

Aggregate Planner

A methodology used in manufacturing to determine optimal production levels, inventory levels, and workforce levels, considering various factors over a medium-term horizon.

Inventory

The total amount of goods or materials held in stock by a business or organization.

Backlog Costs

Expenses associated with delays in filling orders or meeting service obligations, often due to insufficient inventory or production capacity.