Ali is the managerial accountant in charge of Company A, which sells water bottles. He previously determined that the fixed costs of Company A is equal to $200,000. The variable cost associated with producing one water bottle is $5 per unit. The water bottle is sold at a premium price of $10. What is the production of the company at break even point? OA) 50.000 the O B) 25.000 Oc) 40.000 OD) 30.000 OE) 20.000

Ali is the managerial accountant in charge of Company A, which sells water bottles. He previously determined that the fixed costs of Company A is equal to $200,000. The variable cost associated with producing one water bottle is $5 per unit. The water bottle is sold at a premium price of $10. What is the production of the company at break even point? OA) 50.000 the O B) 25.000 Oc) 40.000 OD) 30.000 OE) 20.000

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 7MC

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