A Product Sells for $200 Per Unit,and Its Variable Costs

question 46

Multiple Choice

A product sells for $200 per unit,and its variable costs are 65% of sales.The fixed costs are $420,000.What is the break-even point in sales dollars?

• A)$2,100.
• B)$6,000.
• C)$420,000.
• D)$646,154.
• E)$1,200,000.

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Definitions:

Monopolistic Firms

Firms operating in a market structure with many competitors that sell differentiated products.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the goods' sensitivity to price changes.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to buy at various prices.

Unity

A state or condition of being one; in economics, it might refer to a unity of purpose or action among individuals or entities.