Minor Video Has Opened a New Store Renting Videocassettes

question 25

Multiple Choice

Minor Video has opened a new store renting videocassettes.Fixed costs are $60,000,and the variable cost per unit is $1.50.The average sale is $5 per customer.Use the following axes to determine the break-even quantity graphically.Next,refine your solution by solving it algebraically.(Show your work for credit.)

• A) The break-even quantity is fewer than or equal to 10,000 rentals.
• B) The break-even quantity is more than 10,000 rentals and fewer than or equal to 20,000 rentals.
• C) The break-even quantity is more than 20,000 rentals and fewer than or equal to 25,000 rentals.
• D) The break-even quantity is more than 25,000 rentals.

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Definitions:

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, aimed at protecting investors from fraud.

Solicitation of Proxies

The process by which shareholders are asked to delegate their voting power to representatives to vote on their behalf at shareholder meetings.

Section 12

A specific segment or part within a legal document or statute that addresses a particular point of law.

Section 14(a)

Typically refers to a provision in the Securities Exchange Act of 1934 that deals with proxy solicitations.