If a Firm Sells 40,000 Units and the Contribution Margin

question 37

Multiple Choice

If a firm sells 40,000 units and the contribution margin on the firm's single product is $4.00 per unit and fixed costs are $60,000, what is the firm's breakeven point in units?

• A) 100,000 units
• B) 15,000 units
• C) 60,000 units
• D) 40,000 units

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Definitions:

Insulin

A pancreatic hormone responsible for managing glucose levels in the blood by aiding its absorption into body tissues.

ADH

Antidiuretic Hormone, a hormone secreted by the pituitary gland that regulates the balance of water in the body by reducing the amount of water excreted in the urine.

Addison Disease

A disorder characterized by insufficient production of cortisol and sometimes aldosterone by the adrenal glands, leading to fatigue, muscle weakness, and other symptoms.

Aldosterone

A hormone produced by the adrenal glands that helps regulate blood pressure by controlling sodium and water balance in the body.