Question: Lamar has the following data: Selling Price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 150,000 per month Variable selling & administrative

Lamar has the following data:

Selling Price $ 40
Variable manufacturing cost $ 22
Fixed manufacturing cost $ 150,000 per month
Variable selling & administrative costs $ 6
Fixed selling & administrative costs $ 120,000 per month

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.

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