If Fixed Costs Are $46,800,the Unit Selling Price Is $42,and

question 279

Multiple Choice

If fixed costs are $46,800,the unit selling price is $42,and the unit variable costs are $24,what is the break-even sales (units) if the variable costs are decreased by $2?

• A) 2,127
• B) 1,114
• C) 2,340
• D) 1,950

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Definitions:

Weekly Disbursements

The total amount of money a business pays out in a week, covering expenses such as salaries, supplier payments, and other operational costs.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

BAT Model

Stands for the Behavioral Adjustment Target model, which is a concept in finance that deals with the adjustments investors make based on behavioral economics principles.

Weekly Cash Flows

The movement of cash in and out of a business on a weekly basis, indicating its operational liquidity position.