At a Breakeven Point of 300 Units, the Variable Costs

question 114

Multiple Choice

At a breakeven point of 300 units, the variable costs were $600 and the fixed costs were $300. What will the next (i.e., 401st) unit sold contribute to profit before income taxes?

• A) $0
• B) $2
• C) $1
• D) Cannot be determined

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Definitions:

Organizational Ethics

The principles and standards that guide behavior and decision-making processes within an organization, shaping its culture and reputation.

Ethical Compliance Programs

Implemented frameworks within organizations designed to ensure activities and practices comply with ethical standards, laws, and regulations.

Federal Sentencing Guidelines

A set of regulations that determine the punishment for individuals and organizations convicted of federal crimes, encouraging ethical behavior through penalties.

Consumer Misconduct

Any behavior by consumers that is unethical or illegal, including fraud and deceit in the marketplace.