If the Product Price Is $100, Average Variable Cost $40

question 71

Multiple Choice

If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?

• A) 500 units
• B) 2,000 units
• C) 1,200 units
• D) 300 units
• E) 3,000 units

Comprehend the effects of corporate tax rates on depreciation tax shields and project valuations.

Recognize the conditions under which land, buildings, and equipment can or cannot be depreciated for tax purposes.

Grasp the significance of setting bid prices and how it affects the project NPV.

Understand how depreciation and the choice of depreciation method (e.g., CCA) impact project NPV and cash flows.

---

Definitions:

Hyperthyroidism

A medical condition characterized by excessive production of thyroid hormones, leading to a hyperactive metabolism.

Well-Baby Checkup

Routine medical visits for infants to monitor growth and development, screen for diseases, and administer vaccinations.

Weigh

To measure the weight of an object or individual, usually with scales, as a means of assessing mass.

Infant

A very young child, especially one from birth to about 12 months of age.