A Firm Has Fixed Operating Costs of $253,750, a Sales

question 130

Multiple Choice

A firm has fixed operating costs of $253,750, a sales price per unit of $100, and a variable cost perunit of $65. The firm's operating break-even point in dollars is__________ .

• A) $700,000
• B) $725,000
• C) $390,385
• D) $906,250

Analyze scenarios to determine respective advantages in different tasks or activities.

Recognize evidence of labor specialization in practical and theoretical contexts.

Examine the implications of division of labor and specialization on productivity and economic efficiency.

Understand the concept of the production possibilities frontier (PPF) and its assumptions.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Current Ratio

A measurement indicating how well a business can cover its short-term debts with its available assets, made by dividing current assets by current liabilities.

Financial Statements

Official records that outline the financial activities and condition of a business, individual, or other entity.

Average Collection Period

The mean number of days a company waits to get payments from customers for products or services provided on credit.