If Fixed Costs Are $500,000, the Unit Selling Price Is

question 90

Multiple Choice

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what are the break-even sales (units) if fixed costs are increased by $80,000?

• A) 10,545 units
• B) 19,333 units
• C) 23,200 units
• D) 25,000 units

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Definitions:

Permanent Workers

Employees who are hired on an indefinite basis, often receiving full-time benefits and job security, as opposed to temporary or contract workers.

Aircraft Manufacturing

The industry involved in designing, producing, and maintaining aircraft.

War Effort

War effort refers to the collective measures and actions taken by a country and its citizens to support military operations during wartime, including economic mobilization, production, and logistics.

Clerical Work

Administrative tasks including filing, typing, record keeping, and handling correspondence, typically performed in an office setting.