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:

Improper Threats

Coercive statements or actions that are unethical, illegal, or otherwise inappropriate, especially to gain an advantage in a negotiation or transaction.

False Representation

The act of deliberately presenting false information or misrepresenting facts, typically with the intent to deceive or mislead.

McJobs

Low-paying, low-skilled jobs with poor working conditions and little prospect of advancement, often seen in the fast-food industry and other service sector businesses.

Irrational Bureaucracy

Refers to a bureaucratic system that operates on inefficient, rigid rules and procedures, often resulting in illogical or unreasonable outcomes that defy common sense.