If a Firm Has Fixed Costs of $85,000, a Variable

question 56

Multiple Choice

If a firm has fixed costs of $85,000, a variable cost per unit of $10 and sales price per unit of $15, what is the firm's breakeven point in units?

• A) 15,000 units
• B) 17,000 units
• C) 5,667 units
• D) 3,400 units

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Definitions:

Mechanistic Design

A structure in organizations characterized by strict procedures, rigid divisions of labor, and centralized decision making.

Formal Coordination

A process where organizational activities are aligned and managed through explicit and official policies, procedures, and structures.

Specific Tasks

Distinct activities or assignments that are designed to achieve a particular objective within a set timeframe.

Situational Contingencies

Refers to external or internal factors that influence the effectiveness of management strategies and decision-making processes.