A Company Incurs Fixed Costs of $35,000 and Average Variable

question 45

Multiple Choice

A company incurs fixed costs of $35,000 and average variable costs of $7 per item. This company sells 10,000 units and just breaks even. The unit selling price for the product is:

• A) $10.00
• B) $7.35
• C) $17.00
• D) $10.50

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Definitions:

Possession

The state or fact of having ownership or control of something, often referring to tangible property.

Subtenancy

An arrangement where a tenant leases out a part or all of a leased property to another, creating a sublease.

Trees

Perennial plants with an elongated stem, or trunk, supporting branches and leaves, often playing a crucial role in the environment and human livelihood.

Leasehold

An interest in a property, allowing possession but not ownership, for a specified period under a lease.