If the Sale Price Per Unit Is $12, the Unit

question 232

Multiple Choice

If the sale price per unit is $12, the unit contribution margin is $5, and total fixed expenses are $21,000, what are the break-even sales in units?

• A) 105,000
• B) 252,000
• C) 4,200
• D) 1,750

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Definitions:

Useful Life

The estimated duration a fixed asset is expected to be economically usable, with normal wear and tear, for its intended purpose.

Differentiation Value

The unique value that a product or service offers to distinguish it from its competitors, enhancing its appeal to consumers.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit from the investment divided by its cost.

Selling Price

The price at which a product or service is offered to customers for purchase.