The Atlantic Company Sells a Product with a Break-Even Point

question 120

Essay

The Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000. Determine the (a) unit sales price, and (b) break-even points in sales units if the company desires a target profit of $36,000.

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Definitions:

Defense Mechanisms

Psychological strategies used by individuals to cope with reality and maintain self-image.

Neurotic Anxiety

Anxiety that arises from an unconscious fear that the control mechanisms one uses to keep unacceptable feelings or thoughts out of conscious awareness might fail.

Psychodynamic Approach

A psychological perspective that analyzes how behavior springs from unconscious drives and conflicts.

Sociocultural Approach

refers to the study of how society and culture influence behavior, attitudes, and mental processes.