At a Breakeven Point of 200 Units, the Variable Costs

question 158

Multiple Choice

At a breakeven point of 200 units, the variable costs were $400 and the fixed costs were $200. What will the next (i.e., 401st) unit sold contribute to profit before income taxes?

• A)$0
• B)$2
• C)$1
• D)Cannot be determined

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Definitions:

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Strategic reserves of petroleum maintained by a government for use during crises and to safeguard against sudden supply disruptions.

Walter Lippmann

An influential American writer, reporter, and political commentator known for being one of the first to introduce the concept of the "cold war" and for his deep analyses of public affairs.

American Voters

The citizens of the United States who are eligible to vote in local, state, and federal elections, contributing to the democratic process by selecting public officials and deciding on public issues.

Bruce Barton

An American author, advertising executive, and politician noted for his 1925 book "The Man Nobody Knows," which presented Jesus Christ as "the founder of modern business."