A Company with Fixed Costs of $200,000 Per Month Believes

question 49

Multiple Choice

A company with fixed costs of $200,000 per month believes that they have this holiday season's hot selling item, a towel that folds itself into a variety of shapes so you can turn your own home into a cruise ship cabin. They believe they can sell 100,000 units and need to determine a minimum price that will cover their fixed and variable costs, with the latter being $45 per unit.

• A)$45.20
• B)$46.50
• C)$46.80
• D)$47.00

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Definitions:

Mass Media

The various means of communication that reach large numbers of people, such as television, newspapers, and the Internet, often used for broadcasting information or entertainment.

Social Norms And Values

Unwritten rules and principles that dictate behaviors deemed acceptable and important in a society.

20th Century

The period from January 1, 1901, to December 31, 2000, marked by significant developments in technology, politics, and culture on a global scale.

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