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:

Social Factors

Aspects of society and culture that influence people's behavior, preferences, and interactions within a project or organization.

Detailed Estimates

Detailed estimates provide an in-depth projection of the costs associated with a project, based on precise assessments of necessary resources.

Statistical Relationship

The connection or correlation between two or more variables that can be measured using statistical methods.

Historical Data

Previous data collected over time that is used to analyze trends, forecast future events, or make comparisons.