If Fixed Costs Are $561,000 and the Unit Contribution Margin

question 9

Multiple Choice

If fixed costs are $561,000 and the unit contribution margin is $8.00, what is the break-even point in units if variable costs are decreased by $0.50 a unit?

• A) 66,000
• B) 70,125
• C) 74,800
• D) 60,000

Understand the use and purpose of economic models in explaining real-world phenomena.

Distinguish between movements along a curve and shifts of the curve in economic models.

Recognize the significance of opportunity cost in economic decision-making.

Understand the implications of correlations and causations among economic variables.

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Definitions:

Salesperson Knowledge

The information and skills that a sales representative possesses, which can include product details, market insights, and customer service techniques.

Product

Any item or service offered for sale, designed to meet a specific need or demand in the market.

Service

Making a contribution to the welfare of others; the product which is an action or activity done for others for a fee.

Premium

Refers to a payment made for insurance coverage or an amount paid for a product/service above its standard cost.