Fixed Costs Are $900000 and the Variable Costs Are 75

question 88

Multiple Choice

Fixed costs are $900000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars?

• A) $2100000
• B) $2700000
• C) $3600000
• D) $1200000

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Definitions:

Structural Unemployment

Unemployment arising from fundamental changes in the economy that displace workers, such as technological advancements or shifts in demand.

Stagflation

A situation where an economy experiences stagnant growth, high unemployment, and high inflation simultaneously, presenting a challenge to economic policy.

Actual Price Level

The current level of prices in the economy for goods and services, reflecting inflation or deflation in the market.

Real Wages

The purchasing power of wages, taking into account the effects of inflation or deflation, representing the quantity of goods and services wages can buy.