If the Sale Price Per Unit Is $26, the Variable

question 201

Multiple Choice

If the sale price per unit is $26, the variable expense per unit is $19.50, and the break-even sales in dollars is $47,320, what are total fixed expenses?

• A) $11,830
• B) $1,820
• C) $15,773
• D) $280

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Definitions:

Special Account

An account designated for a particular purpose or offering special conditions or privileges.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so the investment grows at an increasing rate.

Compounded Annually

A method of calculating interest in which the accumulated interest is added to the principal at the end of each year, with future interest then calculated on the new total.

Percentage Increase

A measure of the degree to which a quantity has grown in proportion to its initial value, expressed as a percentage.