A company has fixed costs of 500 and variable costs of 8 per unit produced. Each unit sells for $20. What is the minimum number of units…

Break-even happens when revenue equals cost: $20x=500+8x$. Subtract $8x$: $12x=500$, so $x=\frac{500}{12}\approx41.67$. Since the company can sell only whole units, it needs at least $42$ units, choice C. At $41$ units, revenue is $820 and cost is $828, a small loss; at $42$ units, revenue is $840 and cost is $836, a profit. Choice B ($40$) rounds down and loses money. Choice A ($25$) is $\frac{500}{20}$, which ignores the variable cost. Choice D ($63$) is about $\frac{500}{8}$, which ignores the selling price.