A Firm's Per-Unit Contribution Margin Is $30, Its Fixed Costs

question 97

Multiple Choice

A firm's per-unit contribution margin is $30, its fixed costs are $67,500, and its daily production output is 18 units. How many days will it take to break even after it is in operation?

• A) 100 days
• B) 125 days
• C) 139 days
• D) 155 days

Identify appropriate experimental designs to control for various biases.

Understand the role of random assignment and experimental control in establishing causal relationships.

Identify the consequences of failing to control extraneous variables in experimental research.

Appreciate the importance of controlling for participant characteristics in experimental designs.

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Definitions:

Depreciation

The method by which a company allocates an asset's cost over its useful life, reflecting the consumption of the asset's economic benefits.

Disposable Income

The reserve of funds households possess for spending and saving after income tax payments.

Savings

The portion of disposable income not spent on consumption of goods and services, set aside for future use.

Disposable Income

Net financial resources for households to allocate towards spending and savings after income taxation.