A producer with only one product has total fixed costs of $15,000 per month. In addition, it cost the producer $100 in variable costs to produce each unit of her product (raw materials and direct labor cost). The producer charges her wholesalers $125 per unit. How many units of the product does the producer have to sell each month in order to break even?
A. 600 units
B. 450 units
C. 550 units
D. 650 units
E. 500 units
Answer: A
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What will be an ideal response?