Assume a Fixed Cost for a Process of $15,000

question 49

Multiple Choice

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even?

• A) 500 units
• B) 667 units
• C) 790 units
• D) 900 units
• E) 1,000 units

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Definitions:

Bleuler

A Swiss psychiatrist known for his work in the early 20th century, notably for coining the term "schizophrenia."

Schizophrenia

A severe mental disorder characterized by disturbances in thought, perception, and behavior, leading to a disconnect from reality.

Delusions of Grandeur

A belief in one's exaggerated sense of importance, power, knowledge, or identity, often found in manic or psychotic conditions.

Visual Hallucinations

Experiences in which someone sees something that does not exist outside their mind, often associated with psychiatric or neurological conditions.