A Company with Fixed Costs of $10,000 Per Month Has

question 37

Multiple Choice

A company with fixed costs of $10,000 per month has a target price of $165 for their sole product, a heat shield for masonry fireplaces. What level of output represents their break-even point if their variable cost for producing is $35 per unit?

• A)between 60 and 70 units
• B)between 70 and 80 units
• C)between 80 and 90 units
• D)between 90 and 100 units

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Definitions:

Produce Information

The process of generating or creating data, facts, or details that are useful or necessary for a specific purpose or audience.

Accept Data

The process by which data is received and processed by a system or application for further use.

Installing Software

The process of adding new software or programs to a computer system so that they become operational.

Hardware

Physical components and devices that constitute a computer system or network, such as processors, memory devices, and peripherals.