Capital One Produces a Single Product, Which It Sells for $8.00

question 116

Multiple Choice

Capital One produces a single product, which it sells for $8.00 per unit. Variable costs per unit equal $3.20. The company expects short-term fixed costs to be $7,200 for the coming month, at the projected sales level of 20,000 units. Management is considering several alternative actions designed to improve operating results. In conjunction with this, they have created a profit-planning (that is, a CVP) model, which can be used to evaluate different scenarios.

What is Capital One's current break-even point in terms of number of units for the month?

• A) 1,500 units.
• B) 2,250 units.
• C) 3,330 units.
• D) 4,000 units.

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Definitions:

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An organized group of people with at least roughly similar political aims and opinions, that seeks to influence public policy by getting its candidates elected to public office.

Social Movement

A collective effort by a large group of people aiming to promote or resist change in the society regarding specific social issues.

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A form of leadership where followers are drawn to the leader's personal qualities and the extraordinary way they articulate the needs and aspirations of their followers.

Mahatma Mohandas Gandhi

Mahatma Mohandas Gandhi was an Indian lawyer, anti-colonial nationalist, and political ethicist who led the successful campaign for India's independence from British Rule, employing non-violent resistance.