Fixed Costs Are $900000 and the Variable Costs Are 75

question 88

Multiple Choice

Fixed costs are $900000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars?

• A) $2100000
• B) $2700000
• C) $3600000
• D) $1200000

---

Definitions:

Price Ceiling

A legally established maximum price that can be charged for a good or service.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to buy at a specific price.

Market Equilibrium

A situation in a market where the quantity of a product demanded by consumers equals the quantity supplied by producers.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or resource, typically set below the equilibrium price.