Currently, Fixed Costs Are $561,000 and the Unit Contribution Margin

question 76

Multiple Choice

Currently, fixed costs are $561,000 and the unit contribution margin is $10.What would be the break-even point in units if variable cost is decreased by $0.50 per unit?

• A) 59,053 units
• B) 56,100 units
• C) 53,429 units
• D) 60,000 units

---

Definitions:

Natural Monopoly

A market condition where due to high fixed or start-up costs, the most efficient number of firms in the industry is one.

Electric Power

The production and delivery of electricity through an interconnected network for uses such as lighting, heating, and powering appliances.

New Technology

The development and application of innovative tools, machines, techniques, and methods that improve the efficiency and productivity of operations.

Natural Monopolies

Industries where a single firm can supply a good or service to an entire market at a lower cost than two or more firms could, often due to economies of scale.