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Robinson Crusoe Was Trying to Decide If They Should Continue

Question 3

Multiple Choice

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.
-Calculate the break-even point.


A) 594 units
B) 852 units
C) 652 units
D) 2,778 units
E) 15,972 units

Correct Answer:

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