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Spruce Pine Mfg

Question 231

Multiple Choice

Spruce Pine Mfg.Co.has total fixed costs of $300,000 a year.The owner estimates that average variable costs for its product will be about $30 next year.The selling price to wholesalers will be $50.The break-even point is


A) 6,000 units.
B) 10,000 units.
C) 12,000 units.
D) 15,000 units.
E) 20,000 units.

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