Which of the following statements is true regarding the given break-even graph s

Question

Which of the following statements is true regarding the given break-even graph showing the total costs of City1 (blue), City2 (orange), and City3 (black)? Total costs ($) 1000000 800000 600000 400000 200000 800 1600 Quantity (units) 500 1000 1500 2000 City1City2-City3 O Choose City 3 when quantity is less than 800 units O Choose City 1 when quantity is greater than 800 units O Choose City 1 when quantity is greater than 1600 units Choose City 1 when quantity is less than 800 units O Chosse City 2 when quantity is less than 800 units

Explanation / Answer

Solution : Option : D : Choose City 1 when quantity is less than 800 units

Correct option is to :

1. Choose City 1 when quantity is less than 800

2. Choose City 2 when quantity is between 800 and 1600

3. Choose City 3 when quantity is greater than 1600

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