Assuming a Constant Mix of 3 Units of X for Every

question 2

Multiple Choice

Assuming a constant mix of 3 units of X for every 1 unit of Y, a selling price of $18 for X and $24 for Y, variable costs per unit of $12 for X and $14 for Y, and total fixed costs of $89,600, the break-even point in units would be

• A) 9,600 units of X and 3,200 units of Y.
• B) 2,400 units of X and 800 units of Y.
• C) 3,200 units of X and 9,600 units of Y.
• D) 1,867 units of X and 622 units of Y.

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Definitions:

Movie Rental

The temporary provision of a film for personal viewing, typically in exchange for a fee.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Budget Constraint

A concept in economics that represents all the combinations of goods and services that a consumer may purchase given current prices and their income level.

Price

The cost of buying a product or service, typically influenced by the balance of supply and demand.