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 O B) 25.000 Oc) 40.000 O D) 30.000 OE) 20.000 esso

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

hi, can you solve this please ?

 

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
O B) 25.000
OC) 40.000
716
1718
O D) 30.000
OE) 20.000
1718
171005058
17180
71805058
17160
180058
17195058
17180
805058
17160
17180
Transcribed Image Text: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 O B) 25.000 OC) 40.000 716 1718 O D) 30.000 OE) 20.000 1718 171005058 17180 71805058 17160 180058 17195058 17180 805058 17160 17180
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Nash Equilibrium
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education