If Fixed Costs Are $500,000 and the Unit Contribution Margin

question 208

Multiple Choice

If fixed costs are $500,000 and the unit contribution margin is $20, the break-even point in units if fixed costs are reduced by $80,000 is

• A)25,000 units
• B)29,000 units
• C)4,000 units
• D)21,000 units

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Definitions:

Varied Expertise

The possession of knowledge and skills across a broad range of areas or disciplines, contributing to versatility and adaptability in professional contexts.

Job Depth

The degree of control, creativity, and autonomy an employee has over their work tasks, often leading to higher job satisfaction.

Vertical Loading

Increasing the scope of a job by adding responsibilities that are typically performed by higher-level personnel.

Horizontal Loading

The addition of new tasks at the same level of complexity and responsibility to an employee's job in order to increase job variety and interest.