Tim Marlow, the Owner of the Clock Works, Wanted to Know

question 100

Multiple Choice

Tim Marlow, the owner of The Clock Works, wanted to know how many clocks he must sell in order to cover his fixed cost at a given price.Tim knew that he had a fixed cost of $20,000 for equipment, taxes, and a bank loan.He also had a unit variable cost of $20 per clock for labor, and materials.If the price Tim charges for each of his clocks is $40, what is his break-even point quantity?

• A)10 clocks
• B)100 clocks
• C)1,000 clocks
• D)10,000 clocks
• E)cannot be determined from the information provided

---

Definitions:

Thought Processes

The mental operations involved in the perception, understanding, and reasoning which underlie a person's ability to think and make decisions.

Language-like

Pertaining to structures, sequences, or processes that resemble or mimic aspects of linguistic ability, such as syntax and semantics, without being actual language.

Armadillos

Mammals known for their leathery armor shell and the ability to roll into a ball when threatened.

Human Syntax

The set of principles and processes that govern the structure of sentences in human language.