If the Fixed Costs Are $15,000 and the Variable Cost/unit

question 50

Multiple Choice

If the fixed costs are $15,000 and the variable cost/unit is $35 and the break-even is 100 units, what is the selling price per unit?

• A)$185
• B)$110
• C)$65
• D)$130

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Definitions:

Futures Contracts

Standardized agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Actual Delivery

The physical exchange of an asset between seller and buyer or the completion of a transaction, as opposed to a contract being settled by other means.

Interest Rate Futures

Financial derivatives contracts that speculate on the future level of interest rates, allowing investors to hedge or speculate on changes in interest rates.

Eurodollars

U.S. dollar-denominated deposits held in banks outside the United States, not under the jurisdiction of the Federal Reserve, used in international transactions.