Block Company Sells Three Products, Each with a Different Per-Unit

question 40

Multiple Choice

Block Company sells three products, each with a different per-unit contribution margin. To compute Block Company's break-even point in units, it is necessary to know:

• A) The sales mix
• B) The per-unit contribution margin of each product sold
• C) The company's total fixed costs
• D) All of these are needed to compute break-even point

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Definitions:

Corporation

A legal entity recognized by law as separate from its owners, with rights to own assets, incur liabilities, and conduct business.

Closely Held

A business structure where the ownership is concentrated in a small group of individuals, often family members.

Agency Relationships

A legal and fiduciary relationship between two parties, where one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.

Employer-Employee

A legal and professional relationship between a person who hires others to perform specific tasks and those who are hired.