If Fixed Costs Are $500,000, the Unit Selling Price Is

question 54

Multiple Choice

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what is the break-even sales (units) if fixed costs are increased by $80,000?

• A) 10,545 units
• B) 19,333 units
• C) 23,200 units
• D) 25,000 units

---

Definitions:

Tax

A required fiscal imposition or alternative form of charge levied on taxpayers by a governmental institution for the purpose of funding government activities and assorted public expenses.

Buyers

Buyers are individuals or entities that purchase goods or services in the marketplace.

Sellers

Entities or people presenting items or services to be sold within the market.

Rent Control

Rent control is a government policy or regulation that sets a limit on how much landlords can charge for leasing apartments or houses, aimed at making housing more affordable.