Ecstasy Pharmaceuticals faces fixed costs of $1,000,000 with manufacturing its new drug. The company sells the drug in bottles of 50 pills for $10.00. The company estimates that it must sell 200,000 bottles to break even
What is the total cost to produce a bottle of 50 pills?
A) $2.50
B) $5.00
C) $6.00
D) $7.50
E) not enough information to calculate
B
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Indicate whether the statement is true or false
If assets are $300,000 and liabilities are $192,000, then equity equals:
A. $492,000. B. $792,000. C. $192,000. D. $108,000. E. $300,000.
Upon review of Mack's statement of cash flows, the following was noted: Cash flows from operating activities $ 15,000 Cash flows from investing activities 70,000 Cash flows from financing activities (50,000) From this information, the most likely explanation is that Mack is:
A) using cash from operations and selling long-term assets to pay back debt. B) using cash from operations and borrowing to purchase long-term assets. C) using its profits to expand growth. D) using cash from investors to provide for operations.
Which of the following is considered an accelerated depreciation method?
A. Double-declining balance B. MACRS C. Units-of-production D. Both double-declining-balance and MACRS