If the Selling Price Per Unit of a Product Is

question 70

True/False

If the selling price per unit of a product is $30, variable costs per unit are $20, and total fixed costs are $10,000 and a company sells 5,000 units, operating income would be $40,000.

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Definitions:

Shortage

A market condition where the demand for a product exceeds the supply at a given price, often leading to higher prices.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Equilibrium Price

The market price at which the supply of an item matches its demand, leading to a stable market where there is no surplus or shortage.