Multiple Choice
A software company that sells its software pre-installed in personal computers is considering making its own computers instead of purchasing them from the Mega-Chip Company.To assemble their own computers could cost $1,000,000 in fixed costs and $100 per unit in variable costs.The company currently buys PCs for $1200,with no fixed costs.What is the break-even quantity?
A) Greater than or equal to 1800
B) Greater than 900 but fewer than 1800
C) Greater than 450 but fewer than 900
D) Less than 450
Correct Answer:
Verified
Correct Answer:
Verified
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