A Firm Has Fixed Costs of $200,000 and Variable Costs

question 123

Multiple Choice

A firm has fixed costs of $200,000 and variable costs per unit of $6.It plans on selling 40,000 units in the coming year.To realize a profit of $20,000,the firm must have a sales price per unit of at least

• A)$11.00.
• B)$11.50.
• C)$10.00.
• D)$10.50.

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Definitions:

Breathing

The process of inhaling and exhaling air to facilitate gas exchange within the lungs.

Vocal Cords

Folded membranes in the larynx that vibrate to produce sounds when air is expelled from the lungs.

Larynx

Cartilaginous organ located between the pharynx and the trachea; in humans, contains the vocal cords; sometimes called the voice box.

Bronchi

The major air passages of the lungs that diverge from the windpipe, allowing the transportation of air in and out of the lungs.