Assume a Sales Price Per Unit of $25, Variable Cost

question 3

Multiple Choice

Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $18,000. What is the breakeven point?

• A) 45,000
• B) $45,000
• C) 37,500
• D) $37,500

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Definitions:

Life Estate

An estate in land in which the right to possession is based upon a person’s lifetime.

Life Estate

A legal right to use and derive benefit from property for the duration of one's life, after which control reverts to another party.

Fee Simple

A type of freehold ownership where the owner has the greatest possible rights over the land forever.

Prescriptive Right

A right acquired through long-term use, such as the right to cross someone else's land, established by consistent and uninterrupted use over a period prescribed by law.