With its new drug, Ecstasy Pharmaceuticals faces fixed costs of $1 000 000. The company sells the drug in bottles of 50 pills for $10.00. The company estimates that it must sell 200 000 bottles to break even. What is the total cost to produce a bottle of 50 pills?
A) $2.50
B) $5.00
C) $6.00
D) $7.50
E) $8.00

Question

With its new drug, Ecstasy Pharmaceuticals faces fixed costs of $1 000 000. The company sells the drug in bottles of 50 pills for $10.00. The company estimates that it must sell 200 000 bottles to break even. What is the total cost to produce a bottle of 50 pills?
A)	$2.50
B)	$5.00
C)	$6.00
D)	$7.50
E)	$8.00

Quizplus · Accepted Answer

The Answer of With its new drug, Ecstasy Pharmaceuticals faces fixed costs of $1 000 000. The company sells the drug in bottles of 50 pills for $10.00. The company estimates that it must sell 200 000 bottles to break even. What is the total cost to produce a bottle of 50 pills?
A)	$2.50
B)	$5.00
C)	$6.00
D)	$7.50
E)	$8.00

With Its New Drug, Ecstasy Pharmaceuticals Faces Fixed Costs of $1