A Firm Has Fixed Operating Costs of $25,000, a Per

question 144

Multiple Choice

A firm has fixed operating costs of $25,000, a per unit sales price of $5, and a variable cost per unit of $3. What is its operating break-even point if it desires net operating income of $10,000, not $0 (zero) ?

• A) 15,000 units
• B) 17,500 units
• C) 12,500 units
• D) 25,000 units

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Definitions:

Arraignment

An arraignment is a court proceeding where the defendant is formally charged and asked to respond to the charges by entering a plea.

Plea

A formal statement made by a defendant in court regarding their guilt or innocence concerning the charges against them.

Charges

Fees or prices asked for goods and services, or sums levied as penalties for breaking the law or conditions of a contract.

Recidivism

The tendency of a convicted criminal to reoffend.