A Producer with Only One Product Has Total Fixed Costs

question 158

Multiple Choice

A producer with only one product has total fixed costs of $15,000 per month. In addition, it cost the producer $100 in variable costs to produce each unit of his product (raw materials and direct labor cost) . The producer charges his wholesalers $125 per unit. How many units of the product does the producer have to sell each month in order to break even?

• A) 450 units
• B) 500 units
• C) 550 units
• D) 600 units
• E) 650 units

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Definitions:

American Psychological

Likely refers to the American Psychological Association (APA), the leading scientific and professional organization representing psychology in the United States.

Wilhelm Wundt

Often regarded as the father of experimental psychology, he established the first psychology laboratory in Leipzig, Germany.

Structuralism

A theory in psychology focusing on the elements of consciousness and their logical relationships, aimed at understanding the structure of the mind.

Functionalism

A theory in psychology that emphasizes the purpose and practical consequences of mental processes and behaviors.