Use the Information Below to Answer the Following Question(s)

question 100

Multiple Choice

Use the information below to answer the following question(s) .
The Sweet Factory produces and sells specialty fudge. The selling price per pound is $20, variable costs are $12 per pound, and total fixed costs are $6,000.
-What are break-even sales in dollars at The Sweet Factory?

• A) $9,000
• B) $3,750
• C) $750
• D) $15,000

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Definitions:

Nominal GDP

Gross Domestic Product measured at current market prices, without adjusting for inflation, reflecting the value of all goods and services produced by a country within a specific period.

GDP Price Index

A measure that reflects changes in the price level of all goods and services included in the Gross Domestic Product, used to calculate real GDP.

Inflation

The pace at which overall prices for goods and services increase, gradually diminishing the value of money.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, often measured by consumer price indices.