Fixed Costs Are $300,000 and the Variable Costs Are 75

question 6

Multiple Choice

Fixed costs are $300,000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars?

• A) $700,000
• B) $900,000
• C) $1,200,000
• D) $400,000

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Definitions:

Neoclassical Economics

An approach to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect economic decisions.

Rationality

In economics, rationality refers to the assumption that individuals make decisions based on complete information, aiming to maximize their benefit or utility.

Neoclassical Economics

A strategy within economics aimed at understanding how the distribution of products, earnings, and outputs is governed by the forces of supply and demand.