At the Break-Even Point of 2,000 Units, Variable Costs Are

question 118

Multiple Choice

At the break-even point of 2,000 units, variable costs are $55,000, and fixed costs are $32,000.How much is the selling price per unit?

• A)$43.50
• B)$11.50
• C)$16.00
• D)$27.50

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Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise, leading to the reversal of revenue and reduction in sales figures.

Gross Accounts Receivable

The total amount owed to a company by its customers before deducting any allowance for doubtful accounts.

Accrual Accounting

A financial recording approach in which earnings and expenditures are documented upon being accrued, without considering the timing of the associated cash movements.

Sell Receivables

The process of selling a company's accounts receivable to a third party at a discount in order to obtain immediate cash.