A Firm Has Fixed Operating Costs of $525,000, of Which

question 197

Multiple Choice

A firm has fixed operating costs of $525,000, of which $125,000 is depreciation expense. The firm's sales price per unit is $35 and its variable cost per unit is $22.50. The firm's cash operating breakeven point in units is

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

Examine defences to breach of contract, including impossibility and personal satisfaction.

Understand the concept of substantial performance and its applicability.

Comprehend how specific performance and liquidated damages provisions operate within contracts.

Recognize conditions precedent and subsequent in contract terms.

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Inventories

Assets held for sale in the ordinary course of business, or goods that will be used or consumed in the production of goods to be sold.

Gross Profit

The difference between revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.

Operating Expenses

Costs related to the primary activities of a business, excluding costs of goods sold.