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A Company Faces Fixed Costs of $100 000 and Variable Costs

Question 66

Multiple Choice

A company faces fixed costs of $100 000 and variable costs of $8.00 / unit.They plan to directly sell their product to the market for $12.00.How many units must they produce and sell to break even?


A) 20 000
B) 25 000
C) 40 000
D) 50 000
E) not enough information to calculate

Correct Answer:

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