A Company Faces Fixed Costs of $100,000 and Variable Costs

question 126

Multiple Choice

A company faces fixed costs of $100,000 and variable costs of $8.00/unit.It plans to directly sell its product to the market for $12.00.How many units must it produce and sell to break even?

• A) 20,000
• B) 25,000
• C) 40,000
• D) 50,000
• E) not enough information to calculate

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Definitions:

Organizational Socialization

The process through which new employees acquire the necessary knowledge, behaviors, and skills to become effective members of the organization.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences through study, experience, or teaching.

Reality Shock

The experience of discovering that one's expectations of a profession or activity differ significantly from the actual experience.

Information Overload

A condition in which the volume of information one has to deal with exceeds one's capacity to process it effectively.