A Product Sells for $200 Per Unit, and Its Variable

question 174

Multiple Choice

A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. What is the break-even point in dollar sales?

• A) $2,100.
• B) $6,000.
• C) $420,000.
• D) $646,154.
• E) $1,200,000.

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Definitions:

Discount on Common Stock

A reduction offered on the par or stated value of common stock, typically related to issuance below market value.

Par Value

The nominal or face value of a stock or bond, set at the time of its issuance.

Issue Price

The price at which new or existing securities are offered for sale to the public or an individual.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often used by investors to assess the income-generating potential of an investment.