If Fixed Costs Are $500,000 and the Unit Contribution Margin

question 212

Multiple Choice

If fixed costs are $500,000 and the unit contribution margin is $20, what is the break-even point in units if fixed costs are reduced by $80,000?

• A) 25,000
• B) 29,000
• C) 4,000
• D) 21,000

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Definitions:

Correlational Studies

Research methods that explore the relationship between two or more variables to determine if a statistically significant association exists, without assuming causality.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact, typically involving the manipulation of variables under controlled conditions.

Random Sample

A selection method where every member of a population has an equal chance of being included in the sample, decreasing bias in data collection.

Scientific

Relating to or based on the systematic and empirical study of the natural world through observation and experiment.