Multiple Choice
[The following information applies to the questions displayed below.]
Creative Star Corporation produces three lines of desks from wood: Classic,Royal,and Standard.Cost and revenue data pertaining to each product are shown below:
![[The following information applies to the questions displayed below.] Creative Star Corporation produces three lines of desks from wood: Classic,Royal,and Standard.Cost and revenue data pertaining to each product are shown below: Classic desks require five square yards of wood,Royal requires ten square yards,and Standard requires three square yards.High demand for each product line far exceeds the company's production capacity. -If Creative Star Corporation has only 250,000 square yards of wood available,what is the highest total amount of fixed cost the company can incur and still break-even? A) $2,500,000 B) $4,000,000 C) $5,000,000 D) $6,000,000](https://d2lvgg3v3hfg70.cloudfront.net/TB1009/11eaae1a_a2a6_6d25_b09f_0f4e451a3223_TB1009_00_TB1009_00_TB1009_00.jpg)
Classic desks require five square yards of wood,Royal requires ten square yards,and Standard requires three square yards.High demand for each product line far exceeds the company's production capacity.
-If Creative Star Corporation has only 250,000 square yards of wood available,what is the highest total amount of fixed cost the company can incur and still break-even?
A) $2,500,000
B) $4,000,000
C) $5,000,000
D) $6,000,000
Correct Answer:
Verified
Correct Answer:
Verified
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