The Sales Price Is $30 Per Unit,the Contribution Margin Is

question 68

Multiple Choice

The sales price is $30 per unit,the contribution margin is $8 per unit and total fixed costs are $32,000.What is the break-even point in units?

• A) 857
• B) 1,200
• C) 2,000
• D) 4,000

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Definitions:

Delivery Date

In the context of futures contracts, it is the specified date on which the underlying asset must be delivered by the seller to fulfill the terms of the contract.

Sell

The act of disposing of an asset or security in exchange for cash or another financial instrument.

Margin

The amount of equity contributed by an investor as a percentage of the current market value of the securities held in a margin account.

Marked To Market

A method of measuring the fair value of accounts that can fluctuate over time, such as assets and liabilities, by updating them to their current market values.