A Firm Has Fixed Costs of $30,000 Per Year, Depreciation

question 364

Multiple Choice

A firm has fixed costs of $30,000 per year, depreciation of $10,000 per year, a price per unit of $50, and an accounting break-even point of 2,000 units. What are the firm's total variable costs at the accounting break-even point?

• A) $40,000
• B) $50,000
• C) $60,000
• D) $70,000
• E) $80,000

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