If Fixed Costs Are $500,000 and the Unit Contribution Margin

question 96

Multiple Choice

If fixed costs are $500,000 and the unit contribution margin is $40,what is the break-even point in units if fixed costs are reduced by $80,000?

• A)25,000
• B)20,000
• C)10,500
• D)12,500

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Definitions:

Puberty

The period of life at which one becomes functionally capable of reproduction.

Pineal Body

A tiny gland in the brain that secretes melatonin, a hormone that controls sleep cycles.

Under Sternum

Refers to the area located beneath the sternum or breastbone, a central location in the chest.

Thymus

A gland located in the upper chest that helps develop the body's immune system in early life.