EKA Manufacturing Company Produces Part #2206 for the Aerospace Industry

question 111

Multiple Choice

EKA manufacturing company produces part #2206 for the aerospace industry. The unit production cost of part #2206 is $3. The fixed monthly cost of operating the production facility is $3000. Next month's demand for part #2206 is 200 units. How much should the company charge for each unit of part #2206 to break even?

• A) $12
• B) $15
• C) $18
• D) $20

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Definitions:

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Researchers who conducted seminal work in accounting, notably on the relationship between stock prices and companies' earnings announcements.

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