Assume a Fixed Cost for a Process of $15,000

question 49

Multiple Choice

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even?

• A) 500 units
• B) 667 units
• C) 790 units
• D) 900 units
• E) 1,000 units

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Definitions:

Sensory Storage

A short-term storage system for sensory information, allowing it to be retained long enough to be processed further.

Von Restorff Effect

A psychological phenomenon where an item that stands out from a group is more likely to be remembered than other items.

Chunks

Memory strategy that involves combining individual pieces of information into larger groups, or chunks, making them easier to remember.

Short-Term Memory

The component of the memory system that holds a small amount of information in a readily accessible state for a short period of time.