A Manufacturer of 24-Hr Variable Timers, Has a Monthly Fixed

Multiple Choice

A manufacturer of 24-hr variable timers, has a monthly fixed cost of $56,000 and a production cost of $9 for each timer manufactured. The units sell for $16 each. Find the break-even point algebraically.

A) break-even production 16,000 units; break-even revenue $1,280,000
B) break-even production 16,000 units; break-even revenue $128,000
C) break-even production 8,000 units; break-even revenue $1,280,000
D) break-even production 8,000 units; break-even revenue $128,000