SXF Corporation Sells Its Single Product for $14 Per Unit

question 18

Multiple Choice

SXF Corporation sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows: Area D is best described as

• A) Fixed cost
• B) Margin of safety
• C) Estimated profit at actual volume
• D) Breakeven point

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Definitions:

Donaghue V. Stevenson

A foundational case in modern law that established the principle of duty of care, marking the inception of modern negligence law.

Hazardous Products Act

Legislation that regulates the sale, advertisement, and importation of hazardous products to ensure public safety.

Strict Liability

Responsibility for loss regardless of the circumstances.

Advertised Price

The price of a product or service that is publicly promoted or communicated to potential customers.