If a Firm Has Fixed Costs of $30,000,a Price of $4.00,and

question 94

Multiple Choice

If a firm has fixed costs of $30,000,a price of $4.00,and a break-even point of 15,000 units,the variable cost per unit is:

• A) $5.00.
• B) $2.00.
• C) $0.50.
• D) $4.00.

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Definitions:

Dictum

A statement, opinion, or remark within a judicial decision that is not necessary for the decision itself, and therefore not legally binding as precedent.

Nonbinding

An agreement, decision, or result that does not legally compel compliance or enforcement.

Court's Reasoning

The rationale or justification given by a court for its decision, explaining how it applied the law to the facts of the case.

Dicta

Comments, examples, or explanations provided by a judge in a legal opinion that are not necessary to the decision and thus not legally binding as precedent.