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Lamar Has the Following Data -
How Many Units Must Lamar Produce and Sell in
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Question 58

Multiple Choice

Lamar has the following data:
 Selling Price $40 Variable manufacturing cost $22 Fixed manufacturing cost $150,000 per month  Variable selling & administrative costs $6 Fixed selling & administrative costs $120,000 per month \begin{array} { l l } \text { Selling Price } & \$ \quad40 \\\text { Variable manufacturing cost } & \$\quad 22 \\\text { Fixed manufacturing cost } & \$ 150,000 \text { per month } \\\text { Variable selling \& administrative costs } & \$ \quad 6 \\\text { Fixed selling \& administrative costs } & \$ 120,000 \text { per month }\end{array}
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How many units must Lamar produce and sell in order to break-even?


A) 8,333 units.
B) 12,500 units.
C) 15,000 units.
D) 22,500 units.

Correct Answer:

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