Problem Statement: ME Board April 1996
Steel drum manufacturer incurs a yearly fixed operating cost of $200,000. Each drum manufactured costs $160 to produce and sells for $200. What is the manufacturer’s break-even sales volume in drums per year?
- B. 2500
- C. 5000
- D. 1000
The manufacturer’s break-even sales volume in drums per year is 5000 units.
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