Spruce Pine Mfg

question 231

Multiple Choice

Spruce Pine Mfg.Co.has total fixed costs of $300,000 a year.The owner estimates that average variable costs for its product will be about $30 next year.The selling price to wholesalers will be $50.The break-even point is

• A)6,000 units.
• B)10,000 units.
• C)12,000 units.
• D)15,000 units.
• E)20,000 units.

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Definitions:

Conditional Endorsement

An endorsement on a negotiable instrument that limits its payment to certain conditions being met.

Endorsement

An amendment or addition to an existing document or contract, or the act of publically or officially supporting a product or idea.

Order Instrument

A financial document payable to a specific individual or entity identified in the document, requiring endorsement by the payee for cashing or deposit.

Payable

Describes an amount of money that is owed and should be paid to a person or organization.