A Company Incurs Fixed Costs of $35,000 and Average Variable

question 45

Multiple Choice

A company incurs fixed costs of $35,000 and average variable costs of $7 per item. This company sells 10,000 units and just breaks even. The unit selling price for the product is:

• A) $10.00
• B) $7.35
• C) $17.00
• D) $10.50

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Definitions:

Consortium

An association, typically of several business companies, created to undertake a project that is beyond the resources of any one member.

Barcode

A representation of data regarding the object to which it is attached that is readable by machines, typically used for identification and tracking purposes.

Homoplastic Structures

Structures that occur in different species due to convergent evolution or parallel evolution, not because of a common ancestry.

Wing

A limb adapted for flight found in birds, bats, insects, and some other organisms, facilitating movement through the air.