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A New Product That Will Sell for $75

Question 3

Multiple Choice

A new product that will sell for $75.00 has variable costs of $38.00 per unit.Fixed costs of $75,000 must be incurred every year to manufacture this product.What is the annual volume to break even?


A) Fewer than 1500 units.
B) 1500 to 1749 units
C) 1750 to 1999 units
D) 2000 units or more

Correct Answer:

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