For Fixed Costs of $2,000, Revenue Per Unit of $2

question 22

Multiple Choice

For fixed costs of $2,000, revenue per unit of $2, and variable cost per unit of $1.60, the break-even quantity is:

• A)1,000
• B)1,250
• C)2,250
• D)5,000
• E)none of these

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Definitions:

Significant Influence

The capability to engage in the decision-making processes regarding the financial and operational policies of an investee, but without exercising control or shared control over such policies.

Equity in Income

Earnings attributed to a company's investment in other companies, reflecting the share of profits from the investments.

Net Income

The final profit amount for a company, which comes after deducting all expenditures and taxes from the gross revenue.

Dividends

Financial rewards paid out to shareholders, mainly coming from the corporation's net income.