Pet's Eye View Digital Camera Is a Small,durable Digital Camera

question 7

Multiple Choice

Pet's Eye View Digital Camera is a small,durable digital camera that pet owners can clip to their pets' collars.A programmable timer takes pictures every few minutes,recording a photographic diary of the pet's day.The camera sells for $25.The average variable cost for each camera is $10 and the total annual fixed costs for plant operation are $45,000.What is the break-even point in units?

• A) 1,800
• B) 2,500
• C) 3,000
• D) 4,500
• E) 5,000

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Definitions:

Other Comprehensive Income

Revenues, expenses, gains, and losses that are not included in net income, but affect shareholders' equity.

Unrealized Loss

A decline in worth due to the possession of an asset that has depreciated in value, yet remains unsold.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, are subtracted from total revenue.

Dividends Paid

The portion of a company's earnings distributed to shareholders as a reward for their investment.