Refer to the Following Scenario to Answer the Following Questions

question 69

Multiple Choice

Refer to the following scenario to answer the following questions.
Five fishermen live in a village and have no other employment or income-earning possibilities besides fishing.They each own a boat that is suitable for fishing but does not have any resale value.Fish are worth $5 per pound,and the marginal cost of operating the boat is $500 per month.They all fish a river next to the village.According to the following schedule,they have determined that when there are more of them out on the river fishing,they each catch fewer fish per month.

-If four boats operate,then each boat will make a profit of

• A) $775.00.
• B) $500.00.
• C) $275.00.
• D) $675.00.
• E) $68.75.

Identify and interpret a break-even chart.

Calculate break-even point in units and revenue.

Analyze the impact of cost and price changes on break-even points.

Understand the relationship between fixed costs, variable costs, and total costs.