Last Month CMC Corporation Had to Sell 6,000 Units to Reach

question 102

Essay

Last month CMC Corporation had to sell 6,000 units to reach the break- even point. The selling price was $225 per unit and variable costs were $85.50 per unit. What were fixed costs for the month?

---

Definitions:

Football Tickets

Certificates that allow admission to watch a football game.

Demand Function

A mathematical representation that describes the relationship between the quantity of a good or service demanded and its price, among other factors.

Stadium Capacity

Refers to the maximum number of spectators that a stadium can accommodate.

Reservation Price

The maximum price a buyer is willing to pay for a good or service or the minimum price a seller is willing to accept.