Given the Following Data, Compute the BEP in DOLLARS: Selling

question 121

Multiple Choice

Given the following data, compute the BEP in DOLLARS: Selling price = $2.00
Variable cost = $1.00
Fixed cost = $150,000

• A) $300,000
• B) $400,000
• C) $100,000
• D) $200,000
• E) $50,000

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Definitions:

MC Curve

The Marginal Cost curve, which shows the increase in total cost that arises from producing one more unit of a good or service.

Short-Run Supply Schedule

A graphical or tabular representation of the quantity of goods a firm is willing and able to supply at different price points, over a short period.

Total Profit

The net amount of money a business retains after subtracting all its expenses, taxes, and costs from its total revenue.

MC Curve

Marginal Cost Curve, which shows the change in total cost that arises when the quantity produced changes by one unit.