Fixed Costs Equal $15,000,unit Contribution Margin Equals $25,and the Number

question 163

Multiple Choice

Fixed costs equal $15,000,unit contribution margin equals $25,and the number of units sold equal 1,150.Operating income is ________.

• A) $28,750
• B) $13,750
• C) $15,000
• D) $14,750

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Definitions:

Output

The total amount of goods or services produced by a firm or country.

Demand

How much of a good or service that consumers can and want to buy, influenced by differing price levels.

Economic Profit

The difference between total revenues and total costs, including both explicit and implicit costs, representing the surplus generated from economic activities.

Technological Change

A change in the methods, equipment, and software used by a society, improving efficiency, productivity, and quality of life.