Fuschia Company's Contribution Margin Per Unit Is $12

question 8

Multiple Choice

Fuschia Company's contribution margin per unit is $12.Total fixed costs are $84,000.What is Fuschia's break-even point in units?

• A)7,000.
• B)26,520.
• C)57,600.
• D)5,760.
• E)70,000.

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Definitions:

Diminishing Marginal Utility

A principle stating that as a person consumes more of a good, the additional satisfaction or utility from consuming an additional unit decreases.

Total Utility

The total satisfaction received from consuming a particular quantity of goods or services.

Marginal Utility

The added satisfaction a consumer gets from having one more unit of a good or service.

Diminishing Marginal Utility

A principle in economics that posits an individual gains less satisfaction from consuming each additional unit of the same product or service.