A Firm Has Operating Profits of $15,000 on Unit Sales

question 78

Multiple Choice

A firm has operating profits of $15,000 on unit sales of 10,000 units. Fixed costs are $30,000. What is the firm's break-even sales level?

• A) less than 6,000 units.
• B) 6,000 units.
• C) more than 6,000 units
• D) There is not enough information to determine the unit break-even point.

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Definitions:

Agricultural Innovation

The process of introducing new ideas, methods, or devices to improve the efficiency and productivity of farming practices.

Raised Fields

Elevated areas of soil created for agricultural purposes, often found in flood-prone regions to improve drainage and soil fertility.

Reservoirs

Artificial or natural lakes used for the storage of water, often created by damming rivers for water supply, irrigation, or hydroelectric power.

Recordkeeping

The maintenance of records or documents that record significant events, transactions, or findings for future reference.