Using the Contribution Margin Approach,find the Breakeven Point in Units

question 147

Multiple Choice

Using the contribution margin approach,find the breakeven point in units if the selling price per unit is $10,the variable cost per unit is $6,and the fixed costs are $9,000.

• A)643 units
• B)1,500 units
• C)2,250 units
• D)900 units

Assess the significance of related party transactions and subsequent events in financial reporting.

Understand the concept and application of special order pricing to increase net income.

Identify the benefits of using variable costing in short-term pricing decisions.

Explain the procedure for converting variable costing net income to absorption costing net income.

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Definitions:

Consumer Surplus

The divergence in consumers' maximum willingness to pay and the actual payment for a good or service.

Autarky

An economic system or policy where a nation is self-sufficient and does not take part in international trade.

Exporting Industry

An industry primarily focused on producing goods and services for sale in foreign countries.

Imported Good

A product or service brought into one country from another for sale, often subject to tariffs, quotas, or trade agreements.