If Fixed Costs Are $500,000 and the Unit Contribution Margin

question 212

Multiple Choice

If fixed costs are $500,000 and the unit contribution margin is $20, what is the break-even point in units if fixed costs are reduced by $80,000?

• A) 25,000
• B) 29,000
• C) 4,000
• D) 21,000

Understand how transactions influence consolidated cash flows and equity.

Understand the concept of consolidation, including the equity method of accounting for investments.

Calculate non-controlling interests and their impact on consolidated financial statements.

Handle intercompany transactions and unrealized profits for consolidation purposes.

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Definitions:

Sustainable Rate

Refers to the level of extraction or use of resources that can be maintained without depleting the resource or harming the environment.

Environmental Resistance

Factors in the environment that limit the growth, abundance, or distribution of organisms or populations.

Intraspecific Competition

A form of competition where individuals of the same species compete for the same resources in an ecosystem, such as food, space, or mates.

Uniform Dispersion

A distribution pattern where individuals of a particular species are evenly spread out across a habitat or area, minimizing competition and maximizing resource use.