Homework Clinic
Social Science Clinic => Accounting => Topic started by: khang on Mar 6, 2021
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Kanga Company is considering two different production plans.
Option one: Fixed costs of $10,000 and a breakeven point of 500 units.
Option two: Fixed costs of $20,000 and a breakeven point of 700 units.
Which option should Kanga choose if it is expecting to produce 600 units?
◦ Option one.
◦ Option two.
◦ Both options are equally good.
◦ It isn't possible to determine from the information given.
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Option one.
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thank you