M Studios Retails Their Own Brand of Camera That They

question 58

Multiple Choice

M Studios retails their own brand of camera that they manufacture in their plant for $500. The plant capacity is 1,000 units per month and variable costs are $225 per camera. Total fixed costs for the year are $2.16 million. If fixed costs increase by 10%, how many cameras per month would have to be sold to maintain a net income of $49,500?

• A) 950 units
• B) 875 units
• C) 850 units
• D) 925 units
• E) 900 units

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