If the Sales Price Per Unit Is $200

question 67

Multiple Choice

If the sales price per unit is $200.00, the unit variable cost is $148.00, and total fixed costs are $164,000, then the break-even volume in dollar sales rounded to the nearest whole dollar is

• A) $630,769.
• B) $221,622.
• C) $1,640,000.
• D) $206,308.

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Definitions:

Activity Level

A measure of the volume of production or operations, which can impact costs and profitability within a business.

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs more accurately.

Variances

The difference between planned or expected financial outcomes and the actual results, often analyzed in budgeting and cost management.

Performance Reports

Documents that compare actual work performance against planned or expected outcomes.