Dunrobin Company Sells a Single Product for $12

question 81

Multiple Choice

Dunrobin Company sells a single product for $12. Variable costs are $8 per unit and fixed costs total $360,000 at a volume level of 60,000 units. Assuming that fixed costs does not change, Dunrobin's break-even point would be:

• A)30,000 units.
• B)45,000 units.
• C)60,000 units
• D)90,000 units.
• E)negative because the company loses $2 on every unit sold.

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Definitions:

Pressure Flow Theory

A hypothesis explaining how sugars are moved from the leaves where they're produced to other parts of the plant through phloem.

Parenchyma

In plants, simple tissue composed of living, thin-walled cells; has various specialized functions such as photosynthesis.

Xylem

The vascular tissue in plants that conducts water and dissolved nutrients upwards from the root and also helps to form the woody element in the stem.

Phloem

A type of vascular tissue in plants responsible for transporting sugar, nutrients, and signals throughout the plant.