The Selling Price of a Widget Is $15 and the Fixed

question 78

Multiple Choice

The selling price of a widget is $15 and the fixed cost per month is $4,800. The variable cost per widget is $9. Calculate the break-even point in units per month.

• A) 320
• B) 533
• C) 800
• D) 200
• E) 400

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Definitions:

No-Trade Situation

A scenario in which countries or entities do not engage in international trade, often due to policies or barriers.

Domestic Price

The price of goods or services within a country's borders, distinct from international or foreign prices.

World Price

The global market price of a good or service, influenced by worldwide demand and supply.

Tariff

A tax imposed by a government on goods and services imported from other countries, often used to protect domestic industries from foreign competition.