Rusty Co Sells Two Products, X and Y

question 94

Multiple Choice

Rusty Co. sells two products, X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are: Assuming that last year's fixed costs totaled $675,000. What was Rusty Co.'s break-even point in units?

• A) 16,875 units
• B) 30,100 units
• C) 30,000 units
• D) 11,250 units

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Definitions:

Sticky-Wage Theory

Sticky-Wage Theory suggests that wages are slow to adjust to the equilibrium level due to contracts, worker morale, and employer incentives, contributing to unemployment during economic downturns.

Expected Price Level

The anticipated average price of goods and services in the economy for a future period, which can influence consumer and business expectations and behaviors.

Aggregate Supply Curve

The aggregate supply curve represents the total quantity of all goods and services that producers in an economy are willing and able to supply at different price levels.

Government Purchases

Expenditures by government entities on goods and services that directly fulfill governmental functions or public needs.