American Corporation Currently Sells Its Products for $200 Per Unit

question 31

Multiple Choice

American Corporation currently sells its products for $200 per unit.Management is contemplating a 20% increase in the selling price for the next year.Variable costs are currently 40% of sales revenue and are not expected to change next year.Fixed expenses are $120,000 per year. If fixed costs increase 10% next year,and the new selling price per unit goes into effect,how many units will need to be sold to breakeven?

• A)413 units
• B)1,100 units
• C)132,000 units
• D)825 units

Grasp the concepts of various economic fallacies, including post hoc ergo propter hoc, fallacy of composition, and confusion between correlation and causation.

Recognize the importance and implications of rational individual choice in economics.

Distinguish between macroeconomics and microeconomics.

Comprehend the concept of opportunity cost in different scenarios.

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Definitions:

Customer Profiles

Detailed descriptions of a business's typical or ideal customers, including demographic, psychographic, and behavioral traits.

Demographic Characteristics

Attributes of populations, such as age, race, gender, income, education, and employment, which are used for statistical and marketing analysis.

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CRM Systems

Customer Relationship Management Systems; software solutions designed to manage a company’s interactions with current and potential customers, streamline processes, and improve profitability.