If Fixed Costs Are $450,000,the Unit Selling Price Is $75,and

question 131

Multiple Choice

If fixed costs are $450,000,the unit selling price is $75,and the unit variable costs are $50,what are the old and new break-even sales (in units) if the unit selling price increases by $5?

• A)18,000 units and 8,182 units
• B)9,000 units and 8,182 units
• C)18,000 units and 15,000 units
• D)9,000 units and 15,000 units

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Definitions:

MRP

The marginal revenue product, which is the additional revenue generated from using one more unit of a factor of production.

Wage Rate

The amount of money paid to an employee per unit of time or for each unit of output produced.

Demand Schedule

A table or graph that shows the quantity of a good or service that consumers wish to buy at each price level.

Marginal Product

The additional output that is generated by employing one more unit of a specific factor of production, keeping other inputs constant.