Assume That You Can Sell a New Product at $5

question 56

Multiple Choice

Assume that you can sell a new product at $5.00 per unit. Your variable costs are $3.00 per unit and you fixed costs are $20,000. What is your breakeven point in sales units?

• A) 5,000
• B) 7,500
• C) 10,000
• D) 12,500
• E) 15,000

---

Definitions:

Total Assets

The sum of all resources owned by an individual, corporation, or country, including both current and noncurrent assets.

U.S. Households

Refers to living arrangements or economic units in the United States consisting of one or more people who occupy a housing unit.

Informational Efficiency

A characteristic of financial markets where all relevant information is quickly and accurately reflected in security prices, allowing for fair and efficient trading.

Active Trading

The buying and selling of securities with the intent of profiting from short-term price movements.