Determine the Variable Cost of a Pen Manufacturing Company Per

question 10

Multiple Choice

Determine the variable cost of a pen manufacturing company per pen if its breakeven point is 250,000 pens, selling price of each pen is $5, and the fixed cost per year is $750,000.

• A) $2
• B) $3
• C) $4
• D) $1

---

Definitions:

Brain Trust

A group of experts or highly knowledgeable individuals brought together to provide advice and guidance on complex matters or strategic decisions.

Resource Acquisition

The process of obtaining the necessary resources, such as capital, materials, or human skills, needed for business operations or project initiation.

Bootstrapping

refers to starting and growing a business using one's own resources and revenue generated from the business, rather than relying on outside investment.

Accelerated Vesting

A provision that allows an employee to gain access to restricted company assets, like stock options, more quickly than the original schedule.