Echo Ltd Sells Its Single Product for $14 Per Unit

question 9

Multiple Choice

Echo Ltd sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows: Area D is best described as:

• A) fixed cost.
• B) margin of safety.
• C) estimated profit at actual volume.
• D) breakeven point.

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Definitions:

Specific Instructions

Detailed directions or orders given with the expectation that they will be followed exactly as stated.

Chauffeur

A person employed to drive a passenger motor vehicle, especially a luxury vehicle such as a large sedan or limousine.

Employer

An individual or organization that hires and remunerates individuals to undertake specific roles or jobs, often providing direction and control over the work performed.

Sole Proprietorship

A business owned and operated by one individual, where there is no legal distinction between the owner and the business entity.