If Breakeven Point Is 1,000 Units, Each Unit Sells for $31

question 173

Multiple Choice

If breakeven point is 1,000 units, each unit sells for $31, and fixed costs are $30,000, then on a graph the ________.

• A) total revenue line and the total cost line will intersect at $31,000 of revenue
• B) total cost line will be zero at zero units sold
• C) revenue line will start at $30,000
• D) total revenue line and the total cost line will intersect at $61,000 of revenue

Know the stakeholders in corporate governance and their roles.

Understand the concept and importance of asset allocation in funds.

Identify the characteristics and management fees of various investment tools, including mutual funds and exchange-traded funds (ETFs).

Recognize the tax implications and regulatory requirements for mutual funds.

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Definitions:

Daily Interest Rate

A method of calculating interest where the rate is applied to the principal on a daily basis.

Miller-Orr Model

A financial model used for managing cash balances and optimizing the levels of cash holding based on specified upper and lower limits.

Cash Balance Target

A cash balance target is a strategy companies use to maintain an optimal level of cash reserves for operations and unexpected expenses, aiming to balance liquidity with profitability.