The Cairns Company Has Fixed Costs of $400 000 and Variable

question 124

Multiple Choice

The Cairns Company has fixed costs of $400 000 and variable costs are 75% of the selling price.To realise profits of $100 000 from sales of 500 000 units,the selling price per unit:

• A)must be $1.00.
• B)must be $1.33.
• C)must be $4.00.
• D)is indeterminable.

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Definitions:

Taft-Hartley Act

A 1947 federal law that restricted the activities and power of labor unions in the United States.

Landrum-Griffin Act

A 1959 U.S. federal law formally known as the Labor-Management Reporting and Disclosure Act, which aims to protect union members' rights and promote democracy within labor organizations.

Pure Monopsonist

A market condition where there is only one buyer for a product or service, giving this buyer significant control over the market.

Market Equilibrium Wage

The market equilibrium wage is the rate of compensation for labor where the quantity of labor supplied by workers matches the quantity of labor demanded by employers, resulting in no excess supply or demand in the job market.