Eastwick Produces and Sells Three Products Fixed Costs Total $200,000

question 155

Multiple Choice

Eastwick produces and sells three products.Last month's results are as follows:
$$\begin{array} { | l | r | r | r | } \hline & \text { P1 } & \text { P2 } & \text { P3 } \\\hline \text { Revenues } & \$ 100,000 & \$ 200,000 & \$ 200,000 \\\hline \text { Variable costs } & 40,000 & 140,000 & 80,000 \\\hline\end{array}$$
Fixed costs total $200,000.What is Eastwick's break-even sales volume? (Assume the current product mix. )

• A) $500,000.
• B) $416,667.
• C) $384,615.
• D) $460,000.

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Definitions:

First Impressions

The initial thoughts or judgments formed about someone or something at the beginning of an encounter, often lasting and difficult to change.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Proximity

The physical or psychological closeness between people, which can influence attraction and social relations.

Altruistic Behavior

Actions taken to benefit others without expectation of reward or recognition, often at a cost to oneself.