The Price Per Unit Is $1

question 173

Multiple Choice

The price per unit is $1.00.The average variable cost per unit is 60 cents.The total fixed cost is $20,000.What is the break-even point?

• A)75,000 units
• B)50,000 units
• C)20,000 units
• D)33,334 units
• E)40,000 units

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Definitions:

Limited Liability Company

A company organization style that merges the protective limited liability of corporations with the advantageous pass-through taxation of sole proprietorships or partnerships.

State Law

consists of the laws and regulations enacted by the legislative bodies of individual states.

Passed Through

A term often used in finance and taxation to describe income, losses, or tax benefits transferred from one entity to another, such as in a pass-through entity.

Limited Liability Company

A business configuration that combines the beneficial limited liability of a corporation with the pass-through taxation system of partnerships or sole proprietorships.