If Fixed Costs Are $400,000 and the Unit Contribution Margin

question 155

Multiple Choice

If fixed costs are $400,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit?

• A) 25,000 units
• B) 10,000 units
• C) 400,000 units
• D) 20,000 units

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Definitions:

Judicial Review

The power of courts to assess the constitutionality of laws or governmental actions and to override those found to be unconstitutional.

Constitution

A system of fundamental principles or established precedents according to which a state or other organization is governed.

Federalism

Federalism is a political system where power is divided between a central government and smaller political units, such as states.

Authority

The capability or privilege to direct actions, decide on matters, and command adherence.