Total fixed costs are $300. The selling price is $15. Average variable costs are $5. The break-even volume of production is ________ units
A) 60
B) 40
C) 30
D) 20
E) 15
C
Explanation: C) The break-even volume of production is found by (Total Fixed Costs)/(Revenue per unit - Average Variable Costs). In this case, $300/($15 - $5 ) = $300/$10 = 30.
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