If Fixed Costs Are $46,800, the Unit Selling Price Is

question 137

Multiple Choice

If fixed costs are $46,800, the unit selling price is $42, and the unit variable costs are $24, what are the break-even sales (units) if the variable costs are decreased by $2?

• A) 2,127
• B) 1,114
• C) 2,340
• D) 1,950

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Definitions:

Oil Embargoes

A policy tool that involves restricting the sale of oil to certain countries as a measure of control or punishment.

Aggregate Demand

All-encompassing demand for goods and services in an economy, analyzed at one price level throughout an allotted time frame.

Aggregate Supply

The entirety of goods and services that economic entities intend to market within a particular period in an economic environment.

Expected Price Level

The anticipated average of prices for all goods and services in an economy over a future period.