Lee Company Manufactures and Sells Widgets for $2 Per Unit

question 54

Multiple Choice

Lee Company manufactures and sells widgets for $2 per unit.Its variable cost per unit is $1.70.Lee's total fixed costs are $10,500.How many widgets must Lee Company sell to break even?

• A) 5,250
• B) 6,176
• C) 35,000
• D) 52,500
• E) 61,760

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Definitions:

Carbon

A chemical element with the symbol C and atomic number 6, essential for all life, known for its ability to form a vast number of compounds.

Hydrogen

The lightest and most abundant chemical element in the universe, consisting of a single proton with one electron, often used in fuel cells and various industrial processes.

Mercury

A chemical element with the symbol Hg and atomic number 80, known as quicksilver; a heavy, silvery d-block element that is liquid at room temperature.

Helium

A colorless, odorless, tasteless, inert gas that is the second lightest element and found in abundance in the universe.