Regency Inc. makes disposable cap and gown sets for graduations. Each cap and gown set sells for $15. The average variable cost for manufacturing 10 cap and gown sets is $100. Total fixed costs for the year equal $65,000. What is the break-even point in units?

a. 4,334
b. 1,300
c. 13,000
d. 765

Ans: c. 13,000

Business

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