At a Break-Even Point of 400 Units Sold,variable Expenses Were

question 39

Multiple Choice

At a break-even point of 400 units sold,variable expenses were $4,000 and fixed expenses were $2,000.What will the 401^st unit sold contribute to operating income?

• A) $0.
• B) $5.
• C) $10.
• D) $15.

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Definitions:

Real Price

The market price adjusted for inflation, showing the purchasing power of an amount of money.

CPI

The Consumer Price Index represents a calculated average of the prices for a mix of consumer products and services, including food, transportation, and healthcare, weighted by their importance.

Geographic Extent

The area or scope over which a specific phenomenon, activity, or influence is spread.

Public Transit

Transportation services provided by public or private organizations that are available for use by the general public, typically involving buses, trains, and subways.