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Location Choice I Has Monthly Fixed Costs of $100,000 and Per-Unit

Question 60

Multiple Choice

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?


A) 30,000 units
B) 25,000 units
C) 40,000 units
D) 50,000 units
E) 60,000 units

Correct Answer:

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