If the Selling Price Per Unit Is $75, the Variable

question 209

Multiple Choice

If the selling price per unit is $75, the variable expense per unit is $70, and total fixed expenses are $62,500 what will the breakeven sales in units be?

• A)12,500
• B)893
• C)431
• D)833

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Definitions:

Selling Price

The amount of money for which a product or service is sold to the customer.

Fixed Costs

Costs that do not change with the level of production or sales volume, such as rent or salaries.

Widgets

A generic term often used to refer to a fictional or unspecified product or gadget.

Nonunion Firms

Companies or organizations where the workforce is not represented by a labor union, often resulting in different working conditions compared to unionized settings.