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:

Competitive Advantage

The attributes or conditions that allow a company or country to produce goods or services more efficiently or at a higher quality than its competitors.

Sustainable Profit

Profit achieved without compromising the ability of future generations to meet their needs, often associated with ethical and environmentally friendly practices.

Superior Profitability

Achieving higher profit margins compared to competitors, usually through efficient operations or unique market positioning.

Industry Domination

A situation in which one company has a significant advantage over its competitors in the same industry, often controlling a large market share.