A Firm Has Operating Profit of $15,000 on Unit Sales

question 51

Multiple Choice

A firm has operating profit of $15,000 on unit sales of 10,000 units. Fixed costs are $30,000. What is the firm's break-even sales level?

• A)Less than 6,000 units.
• B)6,000 units.
• C)More than 6,000 units
• D)There is not enough information to determine the unit break-even point.

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Definitions:

Purchasing Decision

The purchasing decision is the process that leads a consumer to buy a product or service, involving the recognition of needs, the evaluation of options, and the final selection.

Customer Relationship Model

A framework for managing and analyzing a company's interactions with its customers, aiming to improve relationships.

Salespeople

Professionals who specialize in selling products or services, often working on commission and responsible for meeting sales targets.

Implications

The possible results or effects that may arise from a specific action or decision.