A company faces fixed costs of $100 000 and variable costs of $8.00 / unit.They plan to directly sell their product to the market for $12.00.How many units must they produce and sell to break even?
A)20 000
B)25 000
C)40 000
D)50 000
E)not enough information to calculate

Question

A company faces fixed costs of $100 000 and variable costs of $8.00 / unit.They plan to directly sell their product to the market for $12.00.How many units must they produce and sell to break even?
A)20 000
B)25 000
C)40 000
D)50 000
E)not enough information to calculate

Quizplus · Accepted Answer

The Answer is B

A Company Faces Fixed Costs of $100 000 and Variable Costs