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AMA PCM Exam - Topic 6 Question 123 Discussion

Actual exam question for AMA's PCM exam
Question #: 123
Topic #: 6
[All PCM Questions]

Each month, the owner of a small restaurant that sells take-out fried chicken and biscuits pays $2,500 in rent, $500 in utilities, $750 interest on a loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break even each month?

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Suggested Answer: C

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