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Kayla Wants to Know How Many Units She Must Sell

Question 3

Multiple Choice

Kayla wants to know how many units she must sell to cover all of her costs. She indicates to you that her selling price is $25 per unit, her fixed costs are $7,000, and the variable costs per unit are $15. What is her break-even point?


A) 400 units
B) 500 units
C) 700 units
D) 1,150 units

Correct Answer:

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