If TechCor Has Fixed Costs of $60,000, Variable Costs of $1.20/unit

question 34

Multiple Choice

If TechCor has fixed costs of $60,000, variable costs of $1.20/unit, a sales price/unit of $7, and depreciation expense of $25,000, what is its cash breakeven in units?

• A) 6,034 units
• B) 11,458 units
• C) 12,375 units
• D) 45,833 units

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Definitions:

Common Stock

Equity ownership shares in a corporation, giving holders voting rights and a claim on a portion of the company's profits via dividends.

Asset Securitizations

The financial process by which assets are pooled together and securities are issued representing an interest in these assets.

Investment Choices

The act of deciding where to put money to work in the financial or capital markets with the expectation of receiving a return.

Warrant

A warrant gives the holder the right, but not the obligation, to buy or sell a company's stock at a specific price before a certain date, often issued as part of a new stock or bond issue.