A Company Currently Breaks Even at 1,000 Units

question 40

Multiple Choice

A company currently breaks even at 1,000 units.Its fixed costs are $40,000 and its variable costs are $10 per unit.What is the product's selling price per unit?

• A)$100
• B)$ 50
• C)$ 35
• D)$ 25

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Definitions:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Earth's Surface

The outermost layer of the Earth, consisting of land, water, and where most terrestrial life exists.

Percentage

A fraction or ratio represented as a part of 100.

Currency

A medium of exchange used in economic systems, typically issued by a governmental body and accepted within a particular geographic territory.