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How many units must ABC sell to earn a profit

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Q1. Company ABC sells widgets with a per-unit sales price of $5.00 and variable costs per unit of $4.00. ABC's fixed costs are $1,000 per month. How many units must ABC sell to earn a profit of $7,500?

A. 8,500

B. 750

C. 42,500

D. 1,000

Q2. Which statement correctly describes variable costs?

A. None of the above.

B. Variable costs are constant in total and the per-unit cost decreases with production

C. Variable costs are constant per unit and constant in total

D. Variable costs are constant per unit and the total increases with production

Reference no: EM132860332

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