If a Company Has Fixed Costs of $40,000, a Unit

question 153

Multiple Choice

If a company has fixed costs of $40,000, a unit selling price of $12, and variable costs of $4 per unit, how many units will it have to sell to make a profit of $20,000?

• A)5,000 units
• B)2,500 units
• C)3,600 units
• D)7,500 units

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Definitions:

Double Blind

A double-blind study is an experimental method in which neither the participants nor the experimenters know which participants are receiving the test treatment and which are receiving a control treatment, to prevent bias.

Glucosamine

A natural compound found in cartilage, often taken as a dietary supplement to support joint health and relieve osteoarthritis symptoms.

Placebo

A substance or treatment with no therapeutic effect, often used in clinical trials as a control to test the efficacy of new drugs.

Inflammation

A biological response of body tissues to harmful stimuli, characterized by redness, swelling, warmth, and pain.