Helen Is Considering Adding a Rack of Greeting Cards to Her

question 149

Multiple Choice

Helen is considering adding a rack of greeting cards to her product offerings at Litton Books Unlimited. Her fixed costs associated with adding the greeting cards would be $300. Variable costs per card are $1 each. The greeting cards will sell for $2 each. Helen's break-even point would occur at ________ cards sold.

• A) 125
• B) 150
• C) 300
• D) 600

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Definitions:

Chattel

Personal property that is movable, as opposed to real property or real estate.

Profit a Prendre

A right to take something (such as minerals, game, or timber) from another's land.

Easement

A right to cross or otherwise use someone else's land for a specified purpose.

House

A structure serving as a dwelling for one or more persons, especially for a family.