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Lamar Has the Following Data How Many Units Must Lamar Produce and Sell in Order

Question 43

Multiple Choice

Lamar has the following data:

Selling PriceVariable manufacturing costFixed manutacturing cost.Variable selling & administrativecostsFixed selling & administrative costs$40$22$150,000$6$120,000permonthpermonth\begin{array}{c}\begin{array}{|l|}\hline \text {Selling Price}\\\text {Variable manufacturing cost}\\\hline\\ \text {Fixed manutacturing cost.}\\\hline \text {Variable selling \& administrative}\\\text {costs}\\\hline \\\text {Fixed selling \& administrative costs}\\\hline\end{array}\begin{array}{l|}\hline\$ 40 \\\$ 22 \\\hline \\\$ 150,000 \\\hline\\ \$ 6 \\\hline\\ \$ 120,000 \\\hline\end{array}\begin{array}{l|}\hline\\\\\hline \text {per}\\\text {month}\\\hline\\\\\hline \text {per}\\\text {month}\\\hline \end{array}\end{array}

How many units must Lamar produce and sell in order to break-even?


A) 8,333 units.
B) 12,500 units.
C) 15,000 units.
D) 22,500 units.

Correct Answer:

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