If Variable Costs Are $46 Per Unit, Revenues Are $76

question 38

Multiple Choice

If variable costs are $46 per unit, revenues are $76 per unit, and fixed costs are $7,500, the break-even point is:

• A) 1,000 units
• B) 500 units
• C) 250 units
• D) 100 units

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Definitions:

Variable Administrative Expenses

Costs that vary in proportion to changes in an organization's activity level, such as sales commissions.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and hence should not influence future business decisions.

Sunk Cost

Costs that have already been incurred and cannot be recovered or reversed.

Model 240 Machine

A hypothetical or specific name for a machine, possibly denoting a particular model or type used in manufacturing or industrial settings.