If a Firm Has Fixed Costs of $20,000,variable Cost Per

question 32

Multiple Choice

If a firm has fixed costs of $20,000,variable cost per unit of $0.50,and a break-even point of 5,000 units,the price is:

• A) $2.50.
• B) $5.00.
• C) $4.00.
• D) $4.50.

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Definitions:

Thaddeus Stevens

A 19th-century U.S. politician known for his fierce advocacy for the abolition of slavery and his role in the Reconstruction era.

Confederate States

refers to the 11 southern states that seceded from the Union in 1860-1861, leading to the American Civil War.

Reconstruction

Refers to the period following the Civil War in which the United States government focused on rebuilding the Southern states and reintegrating them into the Union.