A business produces 5,00 . units per month. Costs include: $12,00 . on raw materials, $20,00 . on operators and $14,00 . on sales people. Other costs of running the factory were $50,00 . for rent and $30,00 . on other fixed overheads. In order to break even the selling price per unit will have to be:
a. $25.20
b. $29.60
c. $20.30
d. $28
a
You might also like to view...
Could an increase in the demand for compact cars give an American automobile producer a comparative advantage in their production?
A) No, because comparative advantage depends entirely on productive capabilities. B) No, because changes in demand can only affect the price of compact cars. C) Yes, but only if it leads to a change in the techniques of production. D) Yes, by making compact-car production more profitable.
Holding everything else unchanged, higher interest rates in foreign countries relative to interest rates
A) increase the demand and reduce the supply of dollars leading to an increase in the exchange rate. B) decrease the demand and the supply of dollars leading to an decrease in the exchange rate. C) increase the demand and the supply of dollars leading to an increase in the exchange rate. D) decrease the demand and increase the supply of dollars leading to a decrease in the exchange rate