If the Sale Price Per Unit Is $64, Total Fixed

question 37

Multiple Choice

If the sale price per unit is $64, total fixed expenses are $90,000, and the break-even sales in dollars is $360,000, what will the variable expense per unit be?

• A) $80.00
• B) $16.00
• C) $192.00
• D) $48.00

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Definitions:

Mandatorily Redeemable

Describes financial instruments or securities that the issuer is obligated to buy back from holders at a predetermined date or upon the occurrence of certain events.

Preferred Stock

Preferred stock is a type of stock that affords its holders preferential payments of dividends or distributions, and often has priority over common stock in the event of a liquidation.

Liability

Refers to financial obligations or debts that a company or individual owes to others, which must be settled over time through the transfer of economic benefits.

Equity Item

A component of a company's equity section on the balance sheet, representing ownership interests or claims on assets after liabilities are settled.