At a Break-Even Point of 400 Units,variable Costs Were $400

question 44

Multiple Choice

At a break-even point of 400 units,variable costs were $400 and fixed costs were $200.What will the 401^st unit sold contribute to operating profits before income taxes?

• A)$.50
• B)$1.00
• C)$1.50
• D)$2.00

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Definitions:

Liquidated Assets

Assets that have been converted into cash or cash equivalents, often during the process of paying off debt or during liquidation of a company.

Partnership Debt

Partnership debt is the financial obligations that a partnership entity owes to creditors, which are typically shared among the partners according to their agreement.

Limited Partnership

A partnership arrangement in which some partners are only liable up to the amount of their investment, unlike general partners who have unlimited liability.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.