Dodero Company Produces a Single Product That Sells for $100

question 103

Multiple Choice

Dodero Company produces a single product that sells for $100 per unit.Fixed expenses total $12,000 per month,and variable expenses are $60 per unit.The company's sales average 500 units per month.Which of the following statements is correct?

• A) The company's break-even point is $12,000 per month.
• B) The fixed expenses remain constant at $24 per unit for any activity level within the relevant range.
• C) The company's contribution margin ratio is 40%.
• D) Responses A, B, and C are all correct.

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Definitions:

Unconditional Positive Regard

A concept in client-centered therapy suggesting therapists should offer their clients acceptance and support regardless of what the client says or does.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way of uncovering unconscious thoughts and feelings.

Behavior Therapy

Therapeutic orientation that employs principles of learning to help clients change undesirable behaviors.

Psychoanalysis

Therapeutic orientation developed by Sigmund Freud that employs free association, dream analysis, and transference to uncover repressed feelings.