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:

Primary Market Transaction

Financial transactions that occur when securities are issued for the first time, such as an initial public offering (IPO).

Direct Transfer

The movement of assets or funds from one type of account or investment vehicle directly to another without taking possession, often seen in IRA or 401(k) rollovers.

Share Certificates

Physical documents issued by a company that certify the holder is the owner of a specified number of shares in that company.

Sole Proprietorship

A business structure in which a single individual owns the company and is responsible for its debts and liabilities.