Assume a Company Sells a Given Product for $75 Per

question 83

Multiple Choice

Assume a company sells a given product for $75 per unit.How many units must be sold to break-even if variable selling costs are $12 per unit,variable production costs are $23 per unit,and total fixed costs are $700,000?

• A) 11,112 units.
• B) 13,462 units.
• C) 9,334 units.
• D) 17,500 units.
• E) 6,363 units.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, before deducting overheads, salaries, and other operating expenses.

Net Income

After deducting taxes and expenses from its revenues, the resultant profit of a company.

Dividends

Cash payouts from a firm to its equity holders, usually derived from the company's financial gains.