Refer to the Scenario Below to Answer the Following Questions

question 64

Multiple Choice

Refer to the scenario below to answer the following questions.
Breakeven Analysis at MRI (Scenario)
Mike has just been hired as a sales manager at Mobile Research Inc. (MRI) , makers of the popular Blueberry wireless phone. At his first management briefing, Mike is informed that the company is losing money, despite the immense popularity of the Blueberry phone. He learns that the company is facing intense competition from its main rival, Mandarin Communications, makers of the M-Phone. The M-Phone has the same popular features as the Blueberry and sells for $40 less. When Mike asked about the cost structure for the Blueberry he was informed that the selling price is $200, variable costs are $120, and total fixed costs are $800,000 per month.
-Mike calculated the current breakeven point for the Blueberry to be __________ units per month.

• A) 8,000
• B) 10,000
• C) 12,000
• D) 15,000
• E) 20,000

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Definitions:

M-xylene

A type of xylene where two methyl groups are attached to a benzene ring in meta positions to each other.

Structure

The arrangement of atoms within a molecule, determining the molecule's shape and chemical behavior.

P-aminobenzoic Acid

A white crystalline substance that is a part of the vitamin B complex and is used in sunscreen products.

Structure

The arrangement or organization of something's parts or elements which defines its nature or function.