If a Firm Has Fixed Costs of $20,000,variable Cost Per

question 32

Multiple Choice

If a firm has fixed costs of $20,000,variable cost per unit of $0.50,and a break-even point of 5,000 units,the price is:

• A) $2.50.
• B) $5.00.
• C) $4.00.
• D) $4.50.

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Definitions:

Tight Controls

Strict rules and monitoring systems set up to regulate processes and ensure efficiency and compliance within an organization.

Legalistic Management

An approach to management that heavily relies on formal rules, regulations, and procedures to make decisions and solve problems.

Theory Y

A management style that assumes employees are inherently motivated and responsible, favoring a participative approach.

Close Supervision

The process of overseeing employees' work and tasks very closely, with frequent monitoring and guidance.