A Product Is Priced to Sell for $12 with Average

question 68

Multiple Choice

A product is priced to sell for $12 with average variable costs of $8. The company's total fixed costs are $120,000. The minimum number of units that must be sold in order to the breakeven point with zero profits are:

• A) 40,000
• B) 30,000
• C) 15,000
• D) 10,000

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Definitions:

Collectivism

A cultural value that emphasizes the priority of group goals over individual goals and the importance of cohesion within social groups.

North America

A continent located in the Northern Hemisphere, mainly consisting of three countries: Canada, the United States, and Mexico.

China

A country in East Asia, the world's most populous nation, known for its rich history, culture, and its significant role in the global economy and politics.

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, characterized by diverse cultures, languages, and histories among its countries.