(Figure: Costs) in the Figure, What Is the Fixed Cost

question 53

Multiple Choice

(Figure: Costs) In the figure, what is the fixed cost at 40 units?

• A) $6
• B) $8
• C) $14
• D) $240

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Definitions:

Annual Dividend

The total dividend payment a company distributes to its shareholders annually.

Rate of Return

The appreciation or depreciation in value of an investment over an agreed period, conveyed as a percentage of the investment's starting value.

Dividend Increase

An action taken by a company's board of directors to raise the amount paid out to shareholders in dividends.

Required Return

The smallest anticipated return that an investor looks to obtain by putting money into a certain asset, factoring in the risk entailed.