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The Total Fixed Cost of Production in a Manufacturing Company

Question 9

Multiple Choice

The total fixed cost of production in a manufacturing company is $50,000.The company sells its products at $15 and the variable costs associated with each unit sold is $10.Calculate the level of production at which the firm breaks even.


A) 15,000 units
B) 10,000 units
C) 5,000 units
D) 1,000 units
E) 20,000 units

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