The Owner of Clock Winds Incurs a Fixed Cost of $20,000

question 10

Multiple Choice

The owner of Clock Winds incurs a fixed cost of $20,000 for equipment, taxes, and its bank loan.The unit variable cost for labour, materials, and promotional costs is $20.If the price charged for each clock is $40, what is the break-even point quantity?

• A)800
• B)1,500
• C)1,000
• D)1,200

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Definitions:

REM Sleep

A stage of sleep characterized by rapid eye movements and brain activity similar to that of waking, often associated with vivid dreaming.

Brain Activity

Brain activity refers to the electrical and chemical processes occurring within the brain that enable thinking, feeling, and bodily functions.

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.

Sleepiness

A state of feeling drowsy or tired, often leading to a need for sleep.