The Store Has Fixed Costs of $25,000 and a Contribution

question 10

Multiple Choice

The store has fixed costs of $25,000 and a contribution margin per unit of $90 per unit.
Compute the breakeven quantity in units.

• A)266.55 units.
• B)275.77 units.
• C)277.77 units.
• D)288.88 units.
• E)299.99 units.

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Definitions:

Slope

The measure of the steepness of a line on a graph, defined as the ratio of the vertical change to the horizontal change between two points on the line.

General Form

A way of expressing something that is not specific to any particular case but can apply broadly across instances.

Equation

A claim within mathematics that equates two expressions as being identical.

Perpendicular

Describes two lines, planes, or surfaces meeting at a right angle (90 degrees).