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:

Interlock

A situation where members of the board of directors in one company also serve as members of the board in another company, potentially creating conflicts of interest.

Clayton Act

A U.S. legislation enacted in 1914 aimed at preventing anti-competitive practices in their incipiency, including prohibiting mergers and acquisitions that could reduce competition.

Corporate Officers

Executives or high-ranking officials within a corporation who are given authority to make decisions and oversee the day-to-day operations and strategic planning of the company.

Robinson-Patman Act

U.S. federal legislation that forbids producers from engaging in practices that prevent fair competition, especially through price discrimination.