A Crystal Goblet Sells for $50 Per Goblet

question 130

Multiple Choice

A crystal goblet sells for $50 per goblet. The contribution margin per goblet is $14. Total monthly fixed costs are estimated to be $82,600. The monthly breakeven point in goblets is

• A) 5,900 goblets.
• B) 11,800 goblets.
• C) 2,950 goblets.
• D) 41,300 goblets.

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Definitions:

M1

A category of the money supply that includes physical currency and coins, demand deposits, traveler’s checks, and other checkable deposits.

M2

A measure of the money supply that includes cash, checking deposits, and easily convertible near money.

M3

A measure of the money supply that includes M2 plus large time deposits, institutional money market funds, and short-term repurchase and other larger liquid assets.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights such as voting on corporate matters and receiving dividends.