Figure 4-3

question 27

Multiple Choice

Figure 4-3.Paney Company makes calendars. Information on cost per unit is as follows:
Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10.
-Refer to Figure 4-3. What is the break-even point in units?

• A) 2,167
• B) 5,833
• C) 8,000
• D) 12,000
• E) 2,800

---

Definitions:

Unreasonably Dangerous

A legal standard used to describe product defects that pose a risk of harm to the consumer or user that is beyond what would be contemplated by the ordinary consumer, with knowledge common to the community.

Strict Liability

A legal standard that holds parties responsible for damages or harm caused by their actions, regardless of fault or intent.

Unreasonably Unsafe

Describes a condition or product that poses a significant risk of harm to people or property beyond what would be considered reasonable.

Doctrine of Unconscionability

A legal principle that contracts with terms that are excessively unfair or oppressive can be found invalid or modified by a court.