Cando Manufacturing Makes Lamps That Retail at $200 Each

Multiple Choice

Cando Manufacturing makes lamps that retail at $200 each. The unit variable cost is $120, and the fixed costs are $720,000 per year. Cando can produce a maximum of 2,000 lamps per month. At what percent utilization would the monthly net income be $44,000?

A) 60%
B) 55%
C) 50%
D) 65%
E) 70%