If a Firm's Total Fixed Cost Is $400,000 and Its

question 41

Multiple Choice

If a firm's total fixed cost is $400,000 and its fixed-cost contribution per unit is $10,its break-even in units is

• A)30,000.
• B)40,000.
• C)10,000.
• D)20,000.
• E)This cannot be determined with the information provided.

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Definitions:

Interest Rate

The interest rate is the amount charged by a lender to a borrower for the use of assets expressed as a percentage of the principal, often noted annually.

Total Investment

The overall amount of money allocated to purchasing assets or towards spending that is intended to generate future revenue.

Expected Flow

The anticipated movement or transfer of resources, information, or goods in a system over a period.

Future Benefits

The anticipated advantages or improvements in condition and well-being that are expected to occur in the future as a result of certain actions or investments.