A Firm Has Fixed Operating Costs of $525,000

question 20

Multiple Choice

A firm has fixed operating costs of $525,000. The sales price per unit is $35 and its variable costs per unit is $22.50. The firm's operating breakeven point in units is ________.

• A) $23,330
• B) $32,000
• C) $42,000
• D) $52,000

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Definitions:

Overwhelm

A state of being overpowered by emotions, tasks, or information to the extent that it is difficult to cope or respond effectively.

Tit For Tat

A strategy in conflict situations where an individual responds to an action with a similar or equivalent action; often described in the context of reciprocal actions.

Reciprocates

To respond to an action or gesture with a similar one, often in the context of social interactions and relationships, illustrating mutual exchange.

Compete

The act of engaging in a contest or rivalry with others in order to achieve a specific goal or superiority.