A Company's Product Sells for $240 Per Unit

question 27

Multiple Choice

A company's product sells for $240 per unit. Variable cost is $208 per unit. Fixed costs run at $150,400 per month. How many units need to be sold to break even?

• A) 4,700
• B) 4,250
• C) 3,800
• D) 4,900

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Definitions:

U.S. Treasury Bills

Short-term government securities issued by the United States Department of the Treasury with maturity periods typically less than a year, considered low-risk investments.

Small Time Deposits

Bank deposits that have a fixed term or maturity date, typically with smaller deposit amounts and shorter durations.

Demand Deposits

Bank accounts that allow the account holder to withdraw funds without prior notification, such as checking accounts.

Shift Register

A shift register is a type of digital memory circuit used to store and shift data in a series of registers, where each clock pulse moves the data contained in the registers one position to the left or right.