The Acme Flashlight Company Breaks Even at 20,000 Flashlights at $6

question 70

Multiple Choice

The Acme Flashlight Company breaks even at 20,000 flashlights at $6 each, with the average variable cost per flashlight of $4. What is the amount of its fixed costs?

• A) $20,000
• B) $40,000
• C) $60,000
• D) $80,000

---

Definitions:

Identity Formation

The developmental process where a person forms a distinct sense of self and their personal identity, influenced by social, cultural, and personal experiences.

Developmental Psychologist

A psychologist who studies the psychological growth of individuals, from infancy through adulthood.

Adolescence

The developmental phase between childhood and adulthood, characterized by significant physical, psychological, and emotional changes.

Father Absence

The lack or significant reduction of a father's presence and involvement in a child's life, which can impact the child's development and behaviour.