A Firm Has Fixed Operating Costs of $25,000, a Per

question 50

Multiple Choice

A firm has fixed operating costs of $25,000, a per unit sales price of $5, and a variable cost per unit of $3. What is its operating breakeven point if it desires net operating income of $10,000, not $0 (zero) ?

• A) 12,500 units
• B) 15,000 units
• C) 17,500 units
• D) 25,000 units

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Definitions:

Embryonic Stage

The stage of prenatal development that lasts from implantation through the eighth week of pregnancy. It is characterized by the development of the major organ systems.

Teratogens

Agents or factors that cause malformation of an embryo or fetus, such as certain drugs, chemicals, or infections.

Vulnerable Period

A timeframe during which an individual or system is more susceptible to damage or harm due to exposure to stresses or adverse conditions.

Congenital

Present at birth; resulting from the prenatal environment.