Grate Company's Product Has a Selling Price of $15 and a Per-Unit

question 31

Multiple Choice

Grate Company's product has a selling price of $15 and a per-unit variable cost of $8. Its fixed costs are $14,000. How many units must the company sell to earn a profit of $35,000?

• A) 2,334
• B) 3,000
• C) 6,125
• D) 7,000

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Definitions:

Body Temperature

The measure of the body's ability to generate and get rid of heat, reflecting the balance between the body's heat production and its heat loss.

Perspire

The process of sweating, or secreting fluid from the sweat glands of the skin, which helps to regulate body temperature.

Arousal Theory

A theory in psychology that suggests people are motivated to maintain an optimal level of arousal, neither too high nor too low.

Drive-Reduction Theory

A theory in psychology that explains motivation as being based on the goal of eliminating uncomfortable states.