In 2012, Carow Sold 3,000 Units at $500 Each

question 71

Multiple Choice

In 2012, Carow sold 3,000 units at $500 each.Variable expenses were $250 per unit, and fixed expenses were $250,000.The same selling price is expected for 2013.Carow is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%.What is Carow's break-even point in units for 2013?

• A)1,000
• B)1,200
• C)1,250
• D)1,500

---

Definitions:

Export Promotion Policies

Government strategies and measures aimed at increasing the quantity of goods and services sold to foreign countries.

Developed Country

A nation with a relatively high level of economic growth and security, often characterized by a high standard of living, advanced technological infrastructure, and a diverse economy.

Developing Countries

Nations with a lower level of socio-economic development, characterized by lower income, human capital, and industrialization compared to developed countries.

Birth Rates

The number of live births per thousand people in a population over a given period of time.