A Firm with $50,000 in Fixed Costs, Selling Price of $25

question 13

Multiple Choice

A firm with $50,000 in fixed costs, selling price of $25 per unit, and variable costs of $5 a unit is currently operating at breakeven volume. If sales increase 100 units and costs remain the same, the firm will:

• A) have a profit of $2000.
• B) have a loss of $2000.
• C) increase variable costs of $2500.
• D) lower its total fixed costs.

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Definitions:

Temperate Deciduous Forests

Biomes characterized by four seasons, including a distinct winter, and dominated by trees that lose their leaves annually.

Tropical Rain Forests

Biomes located around the Earth’s equator, characterized by high rainfall, diverse species of flora and fauna, and a constant warm temperature throughout the year.

Sunlight Penetrating

The process by which sunlight makes its way through the Earth's atmosphere to reach the surface, providing light and warmth essential for life.

Ground Level

The specific area or surface upon which activities, operations, or structures are situated and take place.