If the Selling Price Per Unit Is $250, Total Fixed

question 106

Multiple Choice

If the selling price per unit is $250, total fixed expenses are $360,000, and the breakeven sales in dollars is $600,000, what is the variable expense per unit?

• A)$66.67
• B)$400.00
• C)$150.00
• D)$100.00

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Definitions:

Market Economy

An economic system where supply and demand from private enterprises and consumers freely determine the production of goods and services, prices, and distribution.

Enforcing Private Agreements

The legal process through which private contracts or understandings between parties are made obligatory and are upheld by law.

Declaration

A formal or explicit statement or announcement.

Consideration

Generally, the value given in return for a promise or a performance. The consideration, which must be present to make the contract legally binding, must be something of legally sufficient value and must be bargained for.