The Company Is Planning to Sell Product Z for $20

question 78

Multiple Choice

The Company is planning to sell Product Z for $20 a unit.Variable costs are $12 a unit and fixed costs are $100,000.What must total sales be to break even?

• A)$266,667
• B)$250,000
• C)$200,000
• D)$166,667

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Definitions:

Exponential Growth

A pattern of growth in which a quantity increases by a consistent percentage over equal time intervals.

Non-renewable Resources

Natural resources that cannot be replenished within a human lifespan, including fossil fuels and minerals.

Natural Gas

A fossil fuel consisting mainly of methane, used as an energy source for heating, electricity generation, and as fuel for vehicles.

Acid Rain

Precipitation that is significantly more acidic than normal due to atmospheric pollution, leading to harmful effects on the environment and structures.