Fixed Costs Are $400,000 and the Contribution Margin Per Unit

question 73

Multiple Choice

Fixed costs are $400,000 and the contribution margin per unit is $80.What is the break-even point?

• A)$500,000
• B)$2,000,000
• C)320,000 units
• D)5,000 units

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Definitions:

Vertical Distance

The difference in height or elevation between two points, often used in the context of graphs or geographical features.

Profit-Maximizing Quantity

The level of output at which a firm achieves the maximum possible profit, where marginal revenue equals marginal cost.

Panel

A group of people gathered to discuss, analyze, or recommend on a particular subject matter or to conduct a study.

Intersection

The point or area where two or more lines or paths cross or meet.