The Variable Cost of a New Computer Keyboard Is $25

question 25

Multiple Choice

The variable cost of a new computer keyboard is $25 per unit, and the fixed costs to produce the keyboard are $20,000 per year. If the selling price of the keyboard is $45, how many units must the company sell to break even?

• A) 800 units
• B) 445 units
• C) 2000 units
• D) 1000 units
• E) None of the above

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Definitions:

Reason

The faculty of the mind by which it distinguishes between right and wrong, truth and falsehood, or makes logical deductions.

Practical

Concerned with actual use or application rather than theory or ideas; focusing on what is effective or achievable in real situations.

Kurt Lewin

A seminal figure in psychology, known for being one of the founders of social psychology and for developing theories related to group dynamics and organizational development.

Psychoanalytic

Refers to a theory of psychology that emphasizes unconscious determinants of behavior and the importance of childhood experiences.