A Product Is Sold at $6 Per Unit,the Unit Contribution

question 153

Multiple Choice

A product is sold at $6 per unit,the unit contribution margin is $5,and total fixed expenses are $5,000,what are the breakeven sales in units?

• A)30,000
• B)1,000
• C)833
• D)25,000

---

Definitions:

Long-Term

Referring to assets, liabilities, or investments that are expected to be held or mature in more than one year.

Interest-Bearing Note

A promissory note that comes with the agreement to pay the holder a fixed amount of interest over a specified period until the principal amount is repaid.

Debenture Bonds

Unsecured bonds that rely on the creditworthiness and reputation of the issuer rather than collateral.