Use the Figure for the Question(s) Below

question 76

Multiple Choice

Use the figure for the question(s) below.
-A maker of computer games expects to sell 475,000 games at a price of $48 per game. These units cost $10 to produce. Selling, general, and administrative expenses are $1.0 million and depreciation is $280,000. What is the EBIT break-even point for the number of games sold in this case?

• A) $26,667
• B) $26,316
• C) $100,000
• D) $33,684

---

Definitions:

Private Ownership

The ownership of property and businesses by individuals or corporations rather than by the government or the public as a whole.

Redistribution of Income

The transfer of income and wealth from some individuals to others through a social mechanism such as taxation, charity, welfare, public services, land reform, or monetary policies.

Circular Flow Model

An economic model that depicts the movement of goods, services, and money between households and businesses in an economy.

Consumer Expenditures

The total amount spent by consumers in an economy on goods and services.