A Maker of Computer Games Expects to Sell 500,000 Games

question 64

Multiple Choice

A maker of computer games expects to sell 500,000 games at a price of $49 per game.These units cost $12 to produce.Selling,general,and administrative expenses are $1.2 million and depreciation is $280,000.What is the EBIT break-even point for the number of games sold in this case?

• A)$24,865
• B)$30,192
• C)$30,204
• D)$40,000

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Definitions:

Individual Rights Principle

An ethical guideline that stresses the importance of respecting and protecting the rights of individuals in decision-making processes.

Persistence

The quality of continuing firmly or obstinately in a course of action in spite of difficulty or opposition.

Direction

Guidance or supervision provided to achieve a goal or follow a particular course of action; often implies leadership or the process of setting goals.

Intensity

The degree of strength, force, or energy with which an action is executed or a characteristic is manifested.