If Fixed Costs Are $46,800, the Unit Selling Price Is

question 168

Multiple Choice

If fixed costs are $46,800, the unit selling price is $42, and the unit variable costs are $24, what is the break-even sales (unit ) if the variable costs are decreased by $2?

• A) 2,127
• B) 1,114
• C) 2,340
• D) 1,950

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Definitions:

Invested Assets

Resources or funds committed by investors to a business, potentially earning returns over time.

Divisional Income

Income generated from a specific division or unit within a company, often used to assess the performance of that segment.

Service Department Expenses

Costs incurred by the service departments within a company, which support the production or operations but do not directly produce goods.

Income from Operations

The profit generated from a company's core business operations, excluding income from other sources and expenses unrelated to operations.