Diamonds in the Ruff Sells Only One Product at a Regular

question 131

Multiple Choice

Diamonds in the Ruff sells only one product at a regular sales price of $7.50 per unit. Variable costs are 60% of sales, and fixed costs are $30,000. What is the break-even point in sales dollars?

• A) $12,000
• B) $18,000
• C) $50,000
• D) $75,000

Explain the match-up hypothesis and its application in marketing communications.

Understand the use and effectiveness of different types of advertising appeals.

Identify and explain biases in advertising and their impact on consumer perception.

Comprehend the concept and importance of source credibility in marketing.

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Definitions:

Customizing Department

A segment within a manufacturing or service company dedicated to modifying products or services to meet specific customer requests or needs.

Job-Order Costing System

A cost accounting system that assigns costs to specific production batches or jobs, used in custom or unique product manufacturing.

Direct Labor-Hours

The total hours worked by employees that are directly involved in the production process, serving as a measure for allocating labor costs to products or services.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products based on a certain activity base.