If Fixed Costs Are $561,000 and the Unit Contribution Margin

question 52

Multiple Choice

If fixed costs are $561,000 and the unit contribution margin is $8.00, what is the break-even point in units if variable costs are decreased by $.50 a unit?

• A) 66,000
• B) 70,125
• C) 74,800
• D) 60,000

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Definitions:

Market Equilibrium

A situation where the quantity demanded of a good or service equals the quantity supplied, leading to a stable price.

Actual Price

The price at which a good or service is sold in the market, not taking into account discounts or premiums.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.

Quantity Supplied

The amount of a commodity that producers are willing to sell at a particular price at a given period.