If Fixed Costs Are $500,000, the Unit Selling Price Is

question 54

Multiple Choice

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what is the break-even sales (units) if fixed costs are increased by $80,000?

• A) 10,545 units
• B) 19,333 units
• C) 23,200 units
• D) 25,000 units

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Definitions:

Productivity Increase

An improvement in the efficiency of producing goods or services, measured by the output produced per unit of input over time.

Hot-glue Gun

A handheld tool that melts adhesive sticks to apply hot glue for bonding materials quickly.

Wood Glue

An adhesive specifically formulated for bonding wood surfaces together.

Output Units

The units of production or service delivery output by a process or system within a given period.