Most operating decisions of management focus on anarrow range of activity called

ID: 2434154 • Letter: M

Question

Most operating decisions of management focus on anarrow range of activity called the:

a. relevant range of production

b. strategic level of production

c. optimal level of production

d. tactical operating level ofproduction

Phipps Co. sells two products, Arks and Bins.Last year, Phipps sold 12,000 units of Arks and 28,000 units ofBins. Related data are:

Product Unit Selling Price Unit Variable CostUnit Contribution Margin

Arks $120 $80 $40

Bins 80 60 20

Assuming that last year's fixed costs totaled$910,000, what was Phipps Co.'s break-even point inunits?

a. 40,000 units

b. 12,000 units

c. 35,000 units

d. 28,000 units

2. Data seems to be incorrect or some details aremissing.

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.