Assume a Fixed Cost for a Process of $120,000

question 17

Multiple Choice

Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break even?

• A) 5,000 units
• B) 6,000 units
• C) 8,000 units
• D) 11,000 units
• E) 12,000 units

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Definitions:

Enuresis

The medical term for involuntary urination, especially by children at night.

-esis

-esis is a suffix used in medical terminology to indicate an action, process, or condition, often used to describe pathological conditions.

Serum

The liquid part of blood that remains after clotting has occurred, devoid of cells and fibrinogen but full of proteins and antibodies.

Fluid

A substance that flows and is not solid, including liquids and gases.