Thunder Corp

question 30

Multiple Choice

Thunder Corp.has a selling price of $25 per unit,variable costs of $20 per unit,and fixed costs of $35,000.How many units must be sold to break even?

• A)7,000
• B)14,000
• C)3,500
• D)2,334

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Definitions:

Long-Run Average Usage

The average amount of a resource used over a prolonged period, reflecting consistent consumption patterns.

Dual Cost Allocation

An accounting method that assigns costs to two or more entities or projects, based on a predetermined formula or basis of apportionment.

Variable Costs

Costs that vary directly with the level of production or service delivery, such as materials and labor.

Fixed Costs

Expenses that do not change with the level of production or sales over a certain period, such as rent and salaries.