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

Question 126

Multiple Choice

A company faces fixed costs of $100,000 and variable costs of $8.00/unit.It plans to directly sell its product to the market for $12.00.How many units must it produce and sell to break even?


A) 20,000
B) 25,000
C) 40,000
D) 50,000
E) not enough information to calculate

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