Felicia Wants to Know How Many Units She Must Sell

question 154

Multiple Choice

Felicia wants to know how many units she must sell to cover all of her costs. She indicates to you that her selling price is $20 per unit, her fixed costs are $6,000, and the variable costs per unit are $15. What is her break-even point?

• A) 300 units
• B) 400 units
• C) 1,200 units
• D) 1,100 units

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Definitions:

ADR

Alternative Dispute Resolution refers to a range of processes that help parties resolve disputes without going to trial.

Resolution Of Dispute

The process by which conflicts are resolved, through negotiation, mediation, arbitration, or legal proceedings.

Less Control

A situation in which an individual or entity has diminished influence or authority over management decisions, often in the context of business ownership or investments.

Wherewithal

The means, resources, or money necessary to accomplish a task or to achieve a specific purpose.