Dane Company Has a Break-Even Point of 120,000 Units

question 76

Multiple Choice

Dane Company has a break-even point of 120,000 units. If the firm's sole product sells for $40 and fixed costs total $480,000, the variable cost per unit must be:

• A) $4.
• B) $36.
• C) $44.
• D) an amount that cannot be derived based on the information presented.
• E) an amount other than $4, $36, or $44, but one that can be derived based on the information presented.

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Definitions:

Uncertainty

A situation or condition where the outcomes, reactions, or events are not predictable or are only partially predictable.

Troposphere

The lowest layer of Earth's atmosphere, where most weather phenomena occur.

Nitrous Oxide

A powerful greenhouse gas and ozone-depleting substance, emitted through agricultural practices, fossil fuel combustion, and industrial activities.

Sulphur Dioxide

A colorless gas with a sharp, choking smell, used in industry and produced by volcanoes, known for its role in acid rain and as a pollutant affecting respiratory health.