When Isaiah Company Has Fixed Costs of $120,000 and the Contribution

question 133

Multiple Choice

When Isaiah Company has fixed costs of $120,000 and the contribution margin is $30, the break-even point is

• A) 16,000 units
• B) 8,000 units
• C) 6,000 units
• D) 4,000 units

---

Definitions:

Nominal GDP

Current price-based valuation of every final good and service produced within a nation's boundaries in a set timeframe.

Real GDP

Real Gross Domestic Product (GDP) measures the value of all finished goods and services produced within a country's borders, adjusted for inflation, within a specific time period.

Price Level

The averaged-out price for the total spectrum of goods and services in the economy.

Nominal Wage

The wage paid to workers stated in current money terms, without adjustment for inflation.