Reference: 08-08 Janet Company Produces a Game That Sells for $17 Per

question 4

Multiple Choice

Reference: 08-08
Janet Company produces a game that sells for $17 per game. Variable expenses are $9 per game and fixed expenses total $172,000 annually.
-The break-even point is closest to?

• A)21,500 units.
• B)24,000 units.
• C)10,118 units.
• D)19,111 units.

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Definitions:

Perfect Substitutes

Goods or services that can be used in exactly the same way and are interchangeable in consumption or production.

Equal Amounts

A term referring to identical quantities or volumes of a given item or resource, implying a state of equilibrium or balance.

Price of X

The amount of money required to purchase a specific good or service denoted as "X."

Lump Sum

A one-time payment for the total amount due, rather than breaking the payment into smaller installments.