Assume a Sales Price Per Unit of $20, Variable Cost

question 101

Multiple Choice

Assume a sales price per unit of $20, variable cost per unit $16, and total fixed costs of $168,000. What is the breakeven point?

• A) 420,000
• B) $420,000
• C) 840,000
• D) $840,000

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Definitions:

Dual Facilities

refers to a strategy where a company operates two or more facilities, typically manufacturing plants or distribution centers, in different locations to better serve various markets or to enhance production capabilities.

Stable Output

The consistent production level of goods or services over a period, unaffected by fluctuations in demand.

Varying Volume

Fluctuations in the quantity of products or services produced or sold over a specific period, often influenced by market demand, seasonality, or production capacity.

Pricing Decisions

The process of determining the price at which a company will sell its products or services.