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A One-Machine Shop Producing Bolts Has a Fixed Cost Of $2,000.00\$ 2,000.00

Question 3

Multiple Choice

A one-machine shop producing bolts has a fixed cost of $2,000.00\$ 2,000.00 and a variable cost of $2.00\$ 2.00 per bolt. The selling price is $6.00\$ 6.00 per unit. Net profit corresponding to the breakeven volume of production is


A) 1000
B) 4000
C) -500
D) 0
E) none of the above

Correct Answer:

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