If Fixed Costs Are $450,000,the Unit Selling Price Is $75,and

question 246

Multiple Choice

If fixed costs are $450,000,the unit selling price is $75,and the unit variable costs are $50,what are the old and new break-even sales (units) if the unit selling price increases by $10?

• A) 6,000 units and 5,294 units
• B) 18,000 units and 6,000 units
• C) 18,000 units and 12,857 units
• D) 9,000 units and 15,000 units

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Definitions:

Market Value

The total worth of an asset or company based on the current price at which it can be sold in the market.

Incremental Value

The additional value created by undertaking a specific action or project, calculated as the difference between the value with the action and without it.

All-Stock Deal

A type of acquisition where the buyer company purchases another company using its own stock as currency, instead of cash.

Outstanding Stock

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.