A Company Sells a Product Which Has a Unit Sales

question 51

Multiple Choice

A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $120,000. The number of units the company must sell to break even is

• A) 60,000 units.
• B) 24,000 units.
• C) 240,000 units.
• D) 40,000 units.

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Definitions:

Two-Thirds

A fraction representing the division of something into three equal parts, with two of those parts being the focus.

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