A Firm Has Fixed Costs of $200,000 and Variable Costs

question 123

Multiple Choice

A firm has fixed costs of $200,000 and variable costs per unit of $6.It plans on selling 40,000 units in the coming year.To realize a profit of $20,000,the firm must have a sales price per unit of at least

• A)$11.00.
• B)$11.50.
• C)$10.00.
• D)$10.50.

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Definitions:

Debtor

An individual or entity that owes money to another; the borrower in a financial transaction.

Liable

Legally responsible or obligated to something, especially to make restitution or compensation.

Secured Party

An individual or organization holding an interest in a debtor's property as collateral for a loan.

Confirmation

The process of verifying or validating an arrangement or transaction, often documented in writing.