Pary's Doughnuts Can Produce Only 100 Doughnuts a Day

question 30

Multiple Choice

Pary's doughnuts can produce only 100 doughnuts a day.The variable cost incurred per unit is $2 and fixed costs incurred per day is $500.At what price should a doughnut be sold to break even?

• A)$10
• B)$5
• C)$7
• D)$4
• E)$8

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