Asked by Madeline Hannemann on Sep 23, 2024

verifed

Verified

​How many units should Harvey's Housewares produce?

A) ​1 unit
B) 2 units
C) 3 units
D) ​Zero units,at these prices,the production should not start

Units

A standard measure or quantity used to specify or quantify the amount of a product, service, or resource.

Prices

The amount of money required to purchase goods or services.

  • Assess actual business cases to inform decision-making related to production quantities and pricing tactics.
verifed

Verified Answer

??
?????? ?????1 day ago
Final Answer :
C
Explanation :
The total estimated cost of producing 3 units is equal to the estimated revenue of $300 (3 units x $100). Therefore, producing 3 units would result in a breakeven point. It would not be profitable to produce less than 3 units as the total costs would outweigh the revenue. It would also not be profitable to produce more than 3 units as the additional units would not generate enough revenue to cover the additional costs. Thus, producing 3 units is the best choice for Harvey's Housewares.