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Assume a Fixed Cost for a Process of $15,000

Question 49

Multiple Choice

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even?


A) 500 units
B) 667 units
C) 790 units
D) 900 units
E) 1,000 units

Correct Answer:

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