WayFair Clothing Has Total Fixed Costs of $34,000 Per Month

question 63

Multiple Choice

WayFair Clothing has total fixed costs of $34,000 per month.It sells a single product with variable costs of $5.60 per unit.If 8,000 units can be sold this month, what price must Wayfair charge in order to break-even?

• A)$4.25
• B)$5.60
• C)$9.85
• D)There is not enough information provided to determine the answer.

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Definitions:

Cognitive Processing

The mental actions or processes involved in acquiring knowledge, understanding through thought, experience, and senses.

Mental Resources

Cognitive and emotional capacities that an individual can draw upon to perform tasks, solve problems, and manage demands, including attention, memory, and resilience.

Attention

The act or state of applying the mind to something, focusing mental effort on a particular stimulus or task.

Habituation

A process through which an individual becomes accustomed to a stimulus after repeated exposure, leading to decreased response.