Jurassic Manufacturers Produces Flooring Material

question 43

Multiple Choice

Jurassic Manufacturers produces flooring material. Fixed costs are $5 000 per month. Sales price for one unit of product is $50, and the variable cost per unit is $30. If Jurassic managers create a CVP graph from volume levels of zero to 400 units, where will the revenue and total cost lines intersect?

• A)190 units
• B)275 units
• C)240 units
• D)250 units

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Definitions:

Limited Liability Company

A form of business organization that unites the personal tax treatment of a partnership or sole proprietorship with the limited legal responsibility associated with corporations.

Tax Purposes

For tax purposes refers to the specific reasons or objectives related to the calculation and payment of taxes to comply with tax laws.

Elect

To choose or select someone or something for a specific role or position through a vote or decision-making process.

Partnership

A lawful collaboration between two or more parties to manage a business and share its profits.