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Assume a Firm Is Developing, Manufacturing, and Selling a Basic

Question 58

Multiple Choice

Assume a firm is developing, manufacturing, and selling a basic software package at $300 per copy. Raw material and direct labor total $100 per unit. Fixed costs are $150,000. If unit sales are 3,000 per year, what will be the break-even point in units?


A) 375 units
B) 500 units
C) 750 units
D) 800 units

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