Tim Marlow,the Owner of the Clock Works,wanted to Know How

question 19

Multiple Choice

Tim Marlow,the owner of The Clock Works,wanted to know how many clocks he must sell in order to cover his fixed cost at a given price.Tim knew that he had a fixed cost of $20,000 for equipment,taxes,and a bank loan.He also had a unit variable cost of $20 per clock for labor and materials.If the price Tim charges for each of his clocks is $40,what is his break-even point quantity?

• A)100 clocks
• B)334 clocks
• C)500 clocks
• D)1,000 clocks
• E)10,000 clocks

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Definitions:

Copyrighted Work

A piece of intellectual property that has been legally registered to secure exclusive rights to its creator for reproduction and distribution.

Ten Years

A time period equal to a decade or 10 consecutive years.

Tangible Property

Physical assets that can be seen, touched, and measured, such as real estate, vehicles, machinery, and other material possessions.

Furniture

Movable items designed to support various human activities such as seating, eating, and sleeping, as well as to hold objects at a convenient height for work.