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Three Processes Have the Following Costs: Process a Has a Fixed

Question 5

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Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit. Process B's fixed cost is $4,000 and variable cost is $2.60/unit. Process C's fixed cost is $8,000 and variable cost is $2.40/unit.
-A firm can procure gummy bags for $1.25 and sell them for $1.99. If the firm purchases 750 units, how many units does it have to sell to break even?


A) Approximately 420 units
B) Approximately 435 units
C) Approximately 450 units
D) Approximately 460 units
E) Approximately 470 units

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