Longstreet Inc

question 38

Multiple Choice

Longstreet Inc.has fixed operating costs of $470,000,variable costs of $2.80 per unit produced,and its product sells for $4.00 per unit.What is the company's break-even point,i.e.,at what unit sales volume would income equal costs?

• A)391,667
• B)411,250
• C)431,813
• D)453,403
• E)476,073

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Definitions:

Market Share

The percentage of total sales volume in a market captured by a brand, product, or company.

Domestically

Pertaining to or occurring within a country's borders; not foreign or international.

Worldwide

Pertains to activities or operations that are carried out on a global scale, affecting or involving people from all over the world.

Services

Activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.