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Quentin Produces Highly Specialized Widgets at His Factory

Question 23

Multiple Choice

Quentin produces highly specialized widgets at his factory. He sells them for $150 each and has a gross profit of $100 on each one. His monthly costs are: $5,000 for rent, $1,000 for utilities, $13,000 for salaries and benefits, $1,000 for insurance, $3,000 for interest on his debt. How many widgets does he have to sell to cover his fixed costs?


A) 230
B) 2,300
C) 23,000
D) 3,500

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