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A New Product Is Being Considered That Will Require $45,000

Question 25

Multiple Choice

A new product is being considered that will require $45,000 in fixed costs per year.Variable costs per unit are estimated to be $12.72.The firm wants to break even if 8000 units are produced and sold per year.What should be the price?


A) less than $16.00
B) between $16.00 and $16.99
C) between $17.00 and $17.99
D) between $18.00 and $18.99

Correct Answer:

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