A Company Sells a Product Which Has a Unit Sales

question 67

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 $180,000.The number of units the company must sell to break even is

• A)90,000 units.
• B)36,000 units.
• C)360,000 units.
• D)60,000 units.

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Definitions:

Domestic Production

The total output of goods and services produced within the borders of a country.

Imported Wine

Wine that is brought into a country from abroad for sale.

Production Possibilities Curves

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when its resources are fully and efficiently utilized.

Trade

The exchange of goods, services, or both between two or more parties, either within an economy or between economies.