A Company Has Total Fixed Costs of $400,000

question 170

Multiple Choice

A company has total fixed costs of $400,000.Its fixed-cost contribution per unit is $10.00,and its price per unit is $5.00.What is the break-even point in sales dollars?

• A)$200,000
• B)$2,000,000
• C)$4,000,000
• D)$800,000
• E)This cannot be determined with the information provided.

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Definitions:

Voidable Title

A legal term referring to a situation where a transfer of title to property can be invalidated due to certain circumstances, such as fraud or misrepresentation, giving the affected party the right to void the transaction.

CIF

Cost, Insurance, and Freight, a trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods.

Voidable Title

A legal status of property ownership that can be declared invalid by one of the parties involved, due to factors such as fraud or coercion at the time of acquisition.

Good Faith Purchaser

An individual who buys something without knowledge of a prior claim or lien against the property, therefore acquiring clean title.