The Following Information Pertains to Apollo Company's Cost-Volume-Profit Relationships How Much Will Be Contributed to Profit Before Taxes by

question 19

Multiple Choice

The following information pertains to Apollo Company's cost-volume-profit relationships: $\begin{array}{ll}\text { Break-even point in units sold } & 1,500 \\\text { Variable costs per urit } & \$ 700 \\\text { Total fixed costs } & \$ 225,000\end{array}$ How much will be contributed to profit before taxes by the 1,501st unit sold?

• A)$850
• B)$700
• C)$150
• D)$0

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Definitions:

Closed Economy

An economy that does not engage in international trade with other economies, neither importing nor exporting goods and services.

Government Deficit

The financial situation in which a government's expenditures exceed its revenues within a given fiscal period, leading to borrowing or debt accumulation.

Private Saving

The portion of households' income that is not consumed or paid in taxes, and is instead saved for future use.

Macroeconomist

An economist who focuses on broad issues such as inflation, unemployment, and national economic growth.