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A Company Is Considering Producing an Item That Can Be

Question 42

Multiple Choice

A company is considering producing an item that can be sold for $37.50 per unit.If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35 then the breakeven volume for this item is


A) 6,000 units.
B) 6,429 units.
C) 72,500 units.
D) 90,000 units.

Correct Answer:

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