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:

Cooperative Games

Cooperative games are strategic games where players can form binding agreements to cooperate and share the payoffs.

Bargaining

The process of negotiating the terms of an agreement or a deal between two or more parties.

Advertising Strategies

Planned tactics employed by businesses to persuade target audiences to purchase a product or service through various forms of media.

Dominant Strategy

Strategy that is optimal no matter what an opponent does.