Assume the Sales Price Is $100 Per Unit and the Total

question 24

Multiple Choice

Assume the sales price is $100 per unit and the total fixed costs are $75,000.The break-even volume in dollar sales is $250,000.What is the variable cost per unit?

• A) $30
• B) $70
• C) $100
• D) $125

---

Definitions:

Controlled Traction

Differential gearing that uses a friction plate assembly to transfer drive torque from a slipping wheel (sensed by axle shaft spinout) to its opposite.

Tag Axle

A truck dead axle located behind a drive axle; may or may not be a lift axle.

Highway Truck

A type of truck designed for long-distance transport on highways, often featuring larger engines and fuel tanks for extended range.

Steering Axle

The axle of a vehicle that is attached to the front wheels, enabling the driver to guide the vehicle's direction.