Firm XYZ incurs fixed overhead costs of $216,000 every year. What price should it charge to break even for the year, if it can sell all of its output?
(1) For every 100 units the company produces, it adds an additional $250 in production costs.
(2) The firm must produce 500 units every month
[spoiler]OA: C. I think it should be B. Do we have to take the variable costs into account here, question stem states nothing about variable costs.[/spoiler]
(1) For every 100 units the company produces, it adds an additional $250 in production costs.
(2) The firm must produce 500 units every month
[spoiler]OA: C. I think it should be B. Do we have to take the variable costs into account here, question stem states nothing about variable costs.[/spoiler]
