If the Product Price Is $100, Average Variable Cost $40

question 71

Multiple Choice

If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?

• A) 500 units
• B) 2,000 units
• C) 1,200 units
• D) 300 units
• E) 3,000 units

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Definitions:

Contingency Approaches

Management theories suggesting that there is no one best way to make decisions; rather, the optimal choice depends on the situation.

Transactional Leadership Approaches

Leadership styles focused on the supervision, organization, and group performance, based on a system of rewards and penalties for achieving specific goals.

Trait Approaches

Trait approaches in psychology propose that individual personalities are composed of broad dispositions, and that these traits influence behavior.

Behavioral Leadership Approaches

Theories focusing on the observable behaviors of leaders and how these behaviors influence their effectiveness in guiding and motivating others.