If Fixed Costs Are $350,000,the Unit Selling Price Is $75,and

question 120

Multiple Choice

If fixed costs are $350,000,the unit selling price is $75,and the unit variable costs are $30,what is the break-even sales (in units) ?

• A)3,500 units
• B)7,778 units
• C)11,667 units
• D)4,667 units

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Definitions:

Maximum Profit

The highest possible financial gain achievable by a firm from its operations, after all costs have been subtracted from total revenue.

Output

The quantity of goods or services produced within a given time frame by a firm, industry, or country.

Long-Run Supply

The time period in which all factors of production and costs are variable, allowing firms to fully adjust to market conditions.

Curve

In economics, this refers to a graphical representation depicting the relationship between two variables, such as supply and demand.