Question 67

225 units must be sold each month to realize a profit.

To achieve profitability, the business must sell 225 units each month, as indicated by the graph. This number represents the breakeven point where total revenue equals total costs.

A) 100

Selling only 100 units each month is insufficient to cover the total costs, as the graph shows that profits begin only after selling more than this amount. Therefore, this option is incorrect.

B) 225

This option is correct as the graph shows that 225 units is the exact point at which total revenue meets total costs, resulting in a profit. This is the breakeven point necessary for realizing profit.

C) 250

While selling 250 units would yield a profit, it is not the minimum required amount to achieve profitability. The graph indicates that 250 units exceed the breakeven point, making this option incorrect for the question's requirement.

D) 275

Selling 275 units also results in a profit, but like option C, it is above the necessary breakeven point of 225 units. Thus, this option is not correct as it does not represent the minimum sales needed to realize profit.

Conclusion

The correct answer is 225 units, as it is the necessary quantity to cover all costs and begin generating profit according to the graph. Other options either fall short of this requirement or exceed it, demonstrating that they do not directly address the question of the minimum units needed for profitability.