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:

Inelastic Demand

A situation where the demand for a good or service is relatively unaffected by changes in price.

Available Substitutes

Alternative products or services that consumers can opt for when faced with changes in price or availability of the original product.

Luxury Good

A good for which demand increases more than proportionally as income rises, and is often seen as a status symbol rather than a necessity.

Coffee And Tea

Two popular beverages consumed worldwide, derived from brewing the roasted seeds of the Coffea plant and the dried leaves of the Camellia sinensis plant, respectively.