A Company Has Total Fixed Costs of $120,000

question 197

Multiple Choice

A company has total fixed costs of $120,000.Its variable cost per unit is $2.00 and its price per unit is $3.50.The break-even point in units is

• A)60,000.
• B)80,000.
• C)34,286.
• D)21,818.
• E)This cannot be determined with the information provided.

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Definitions:

Barrier to Trade

Any obstacle or condition that limits the flow of goods and services between countries, such as tariffs, quotas, or regulations.

Transnationalism

The process of heightened interconnectivity between people and the receding economic and social significance of boundaries among nation states.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness of the world's economies, cultures, and populations.

Labour

The effort by humans to produce goods or services in exchange for wages or other forms of compensation.