Lamar Has the Following Data How Many Units Must Lamar Produce and Sell in Order

question 112

Multiple Choice

Lamar has the following data:

$\begin{array}{c}\begin{array}{|l|}\hline \text {Selling Price}\\\text {Variable manufacturing cost}\\\hline\\ \text {Fixed manutacturing cost.}\\\hline \text {Variable selling \& administrative}\\\text {costs}\\\hline \\\text {Fixed selling \& administrative costs}\\\hline\end{array}\begin{array}{l|}\hline\$ 40 \\\$ 22 \\\hline \\\$ 150,000 \\\hline\\ \$ 6 \\\hline\\ \$ 120,000 \\\hline\end{array}\begin{array}{l|}\hline\\\\\hline \text {per}\\\text {month}\\\hline\\\\\hline \text {per}\\\text {month}\\\hline \end{array}\end{array}$

How many units must Lamar produce and sell in order to break-even?

• A) 8,333 units.
• B) 12,500 units.
• C) 15,000 units.
• D) 22,500 units.

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Definitions:

Automated Vending

The use of self-service machines that dispense products to consumers, operating without the need for human vendors.

Warehouse Club

A membership-based retail store offering a wide variety of merchandise, often in bulk and at discounted prices.

Ultra-Low Prices

Pricing strategy that involves setting the price of products or services at a very low level to attract customers.

Online Retailing

The selling of goods and services through the internet, allowing customers to shop from anywhere at any time.