If Fixed Costs Are $300,000, the Unit Selling Price Is

question 82

Multiple Choice

If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000?

• A) 30,000 units
• B) 8,710 units
• C) 12,273 units
• D) 20,000 units

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Definitions:

Indefinitely

An undefined period of time, with no set end date or limitation.

Assets

Economic resources held by an enterprise, capable of delivering future gains.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered or used but not yet paid for.

Buildings

Real estate structures used for residential, commercial, or industrial purposes.