Wilson's Meats Has Fixed Costs of

question 45

Multiple Choice

Wilson's Meats has fixed costs of $.60 for every pound of meat it sells given a sales level of 32,500 pounds.It charges $3.89 per pound while the variable cost per pound is $2.99.If depreciation is $16,400,what is the accounting profit break-even point?

• A)31,948 pounds
• B)32,467 pounds
• C)39,889 pounds
• D)42,650 pounds
• E)37,338 pounds

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Definitions:

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Option's Market Price

The prevailing price at which an options contract is traded on the market, determined by factors like intrinsic value and time value.

Intrinsic Value

The actual worth of an asset or investment based on its fundamental characteristics, independent of its market value.

Risk-Free Interest

The rate of return on an investment with no risk of financial loss, typically associated with government bonds.