If the Sale Price Per Unit Is $75, the Variable

question 128

Multiple Choice

If the sale price per unit is $75, the variable expense per unit is $45, and total fixed expenses are $1,155,000, what will the break-even sales in units be?

• A) 15,400
• B) 25,667
• C) 38,500
• D) 9,625

Differentiate between variable, fixed, and mixed costs, and how they behave with changes in activity level.

Identify cost behavior and how costs respond to changes in business activity.

Understand the concept of relevant range and its importance in cost behavior.

Analyze the effects of cost behavior on decision making.

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Definitions:

Lobby Group

An organized group of people who work together to influence lawmakers in favor of a specific cause or policy.

Appeal To Ignorance

A fallacy in arguments where a conclusion is based on an absence of evidence, rather than the presence of evidence.

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A dining area within a college or university where students, faculty, and staff can purchase and eat meals.

Leftovers

Food that remains uneaten at the end of a meal and is often saved for later consumption.