A Producer with Only One Product Has Total Fixed Costs

question 187

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. What is the sales amount to break even?

• A) $70,000
• B) $75,000
• C) $80,000
• D) $85,000
• E) $90,000

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Definitions:

Precontemplation Stage

The phase in which an individual is not yet considering change or is unaware of their need for change.

Assessing Motivation

Assessing motivation involves evaluating the driving forces behind an individual's actions, desires, and willingness to achieve goals or undertake tasks.

Lack Of Awareness

A state where an individual or group does not possess knowledge or understanding of certain issues, facts, or sensitivities, which can lead to misunderstandings or inappropriate actions.

SOAP Notes

A method of documentation employed by health care providers to write out notes in a patient's chart, including Subjective information, Objective data, Assessment, and the Plan for care.