A Firm Has Fixed Operating Costs of $525,000

question 20

Multiple Choice

A firm has fixed operating costs of $525,000. The sales price per unit is $35 and its variable costs per unit is $22.50. The firm's operating breakeven point in units is ________.

• A) $23,330
• B) $32,000
• C) $42,000
• D) $52,000

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Definitions:

Guernica

A renowned painting by Pablo Picasso, depicting the bombing of the Basque town of Guernica during the Spanish Civil War, symbolizing the tragedies of war and the suffering it inflicts upon individuals, particularly innocent civilians.

Pablo Picasso

A Spanish painter and sculptor, known for co-founding the Cubist movement and for the variety and innovation of his work across different periods.

Caudillo

A military or political leader in Spanish-speaking countries, often associated with dictatorship or authoritarian rule.

Francisco Franco

A Spanish general who ruled over Spain as a military dictator from 1939 until his death in 1975, following the Spanish Civil War.