If the Break-Even Point Is 100 Units and Each Unit

question 7

Multiple Choice

If the break-even point is 100 units and each unit sells for $50,then:

• A)sales of $4000 will result in a loss.
• B)sales of $5000 will result in zero profit.
• C)selling 125 units will result in a profit.
• D)All of these answers are correct.

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Definitions:

Fill Orders

The process of completing a customer's purchase request by preparing and dispatching the requested products.

External Failure Cost

Expenses incurred when a product fails to meet quality standards after being delivered to the customer, including returns, repairs, and lost sales.

Quality Cost Report

Internal report that details the costs associated with preventing, detecting, and correcting defective work, categorized into prevention, appraisal, and failure costs.

Internal Failure Cost

Costs incurred to rectify defects found before the delivery of a product to the customer, including rework, scrapping, and downtime.