If the Fixed Costs of Manufacturing a New Cell Phone

question 87

Multiple Choice

If the fixed costs of manufacturing a new cell phone are $10,000,the sales price is $60,and variable cost per unit is $20,the break-even point is

• A) 100 units.
• B) 4,000 units.
• C) 20 units.
• D) 1,000 units.
• E) 250 units.

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Definitions:

National Endowment

The collective wealth, assets, or resources that a country possesses, which can contribute to its economic development and welfare.

Labor Costs

The total expenditure incurred by employers for the compensation of employees, including wages, benefits, and taxes.

Production Function

An equation or model that describes the relationship between inputs used in production and the output of goods or services.

Capital

The financial assets or resources that businesses and individuals use to invest, produce goods and services, including buildings, machinery, and equipment.