If Fixed Costs Are $500,000 and the Unit Contribution Margin

question 212

Multiple Choice

If fixed costs are $500,000 and the unit contribution margin is $20, what is the break-even point in units if fixed costs are reduced by $80,000?

• A) 25,000
• B) 29,000
• C) 4,000
• D) 21,000

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Definitions:

Purchase Task

The specific actions and decisions involved in the process of buying products or services, including research, selection, and transaction.

Situational Influence

External factors or circumstances that can affect an individual's decision-making process and behavior in specific situations.

Social Surroundings

The societal and cultural factors that influence individuals' behavior, preferences, and interactions within a community or society.

Physical Surroundings

The environmental factors or conditions in a specific location that can affect individuals' behaviors, experiences, and interactions.