Joseph Company Has Variable Costs of $80 Per Unit,total Fixed

question 126

Multiple Choice

Joseph Company has variable costs of $80 per unit,total fixed costs of $200,000,and a break-even point of 5,000 units.If the variable cost per unit decreases by $8,how many units must Joseph Company sell to break even?

• A) 2,778 units
• B) 2,500 units
• C) 6,250 units
• D) 4,167 units

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Definitions:

Utility Maximization

The economic principle that individuals or firms attempt to allocate their resources in a manner that maximizes their satisfaction or profit.

Marginal Utility

The supplementary enjoyment a consumer experiences when they consume an extra unit of a good or service.

Budget Constraints

Budget constraints represent the limitations on the spending choices of consumers based on their income and the prices of goods and services.

Total Utility

The overall satisfaction a consumer receives from consuming a particular quantity of goods or services.