Violet Company Typically Has $360,000 of Fixed Costs and $25

question 22

Multiple Choice

Violet Company typically has $360,000 of fixed costs and $25 of variable costs per unit. Violet plans to sell 8,000 units this period. In order for Violet to break-even, what price should Violet charge per unit?

• A) $70
• B) $25
• C) $45
• D) $20

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Definitions:

Clarification

The process of making a statement or situation less confused and more clearly comprehensible.

Conditioned Response

A response that is learned when a neutral stimulus is regularly presented together with a stimulus that naturally triggers a reaction, transforming the neutral stimulus into a conditioned one.

Conditioned Stimulus

A formerly neutral signal that, through linkage with an unconditioned stimulus, eventually elicits a conditioned reaction.

Classical Conditioning

A learning process where a neutral stimulus becomes associated with a meaningful stimulus, eliciting a conditioned response.