Mignon D'Armitage Manufactures Jewelry

Mignon d'Armitage manufactures jewelry. This firm is planning to introduce a new necklace and is trying to determine how many units it must sell in order to break even. Fixed costs are $100,000 and variable costs for each unit will be $20. At the price of $45 each, the number of units that must be sold in order to break even is:

A) 2,500.
B) 4,000.
C) 5,000.
D) 7,500.

Correct Answer:

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