For a product, manufacturing costs have been estimated at $ 300,000 in fixed costs per...
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Accounting
For a product, manufacturing costs have been estimated at $ 300,000 in fixed costs per year and $ 5 per unit in variable costs. The sale price will be $ 7 / unit and the plant is presumed to have a capacity to produce 200,000 units per year. Determine what percent of the capacity the plant must operate to avoid losing or winning if we assume that each unit produced can be sold.
a. 70%
b. 75%
c. 60%
d. 65%
e. 55%
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