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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