FCS Corporation Sells Its Single Product for $14 Per Unit

question 15

Multiple Choice

FCS Corporation sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:

Point B is best described as:

• A) Fixed cost
• B) Margin of safety
• C) Estimated profit at actual volume
• D) Breakeven point

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Definitions:

Middle Ages

The period in European history from the fall of the Roman Empire in the 5th century to the beginning of the Renaissance in the 14th century.

Banquets

Large formal meals for many people, often held to celebrate or mark significant events or occasions.

Belching

The act of expelling gas noisily from the stomach through the mouth, often as a natural bodily response.

Goffman

Refers to Erving Goffman, a sociologist known for his studies on symbolic interactionism and the social construction of self.