Assume a Sales Price Per Unit of $25, Variable Cost

question 136

Multiple Choice

Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $18,000.If no units are sold, how much cost would the company incur?

• A)Zero.
• B)The amount of variable costs at the breakeven point.
• C)$18,000.
• D)$27,000.

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Definitions:

Demand Characteristics

Cues in an experiment that suggest to participants what behavior is expected of them.

Falsifiability

The capability of a hypothesis or theory to be proven false, a critical principle for scientific validity.

Parsimony

In science and philosophy, the principle that the simplest explanation of an event or observation is preferred over a more complex explanation.

Demand Characteristics

Demand characteristics refer to subtle cues or signals in a study that communicate to participants how they are expected to behave.