If a Firm Has Fixed Costs of $30,000, a Variable

question 79

Multiple Choice

If a firm has fixed costs of $30,000, a variable cost per unit of $.75, and a break-even point of 5,000 units, the sales price per unit is ________.

• A) $2.50
• B) $6.75
• C) $4.00
• D) $4.50

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Definitions:

Standard Deviation

A tool for assessing the scope of variation or dispersion among a series of figures.

Exponentially Distributed

Describes the time between events in a process in which events occur continuously and independently at a constant average rate.

Parameter λ

A symbol often used to denote a specific parameter in mathematical or statistical expressions, such as the rate parameter in an exponential distribution.

Variance

A measure of the dispersion or spread of a set of data points around their mean, indicating how much the data points differ from the mean.