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:

Formal Operational Stage

The stage of cognitive development, according to Piaget, occurring from approximately age 12 onwards, where individuals develop the ability to think abstractly, logically, and systematically.

Intuitionist Stage

A cognitive phase where individuals rely more on intuitive thinking rather than rational, empirical evidence.

Role Confusion

A situation in which an individual is unsure about the expectations and behaviors associated with a particular social role or identity.

Rebellious

Defying or resisting some established authority, policy, or tradition.