Loretta & Niece's Fixed Costs Are $425,000, Including $25,000 of Depreciation

question 20

Multiple Choice

Loretta & Niece's fixed costs are $425,000, including $25,000 of depreciation expense. The price of each unit sold is $120, and the variable cost per unit is $60. How many units must the firm sell to reach the cash break-even point?

• A) 6,667 units
• B) 7,333 units
• C) 7,083 units
• D) 3,542 units

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Definitions:

Quasi-Experimental Designs

Research designs that approximate the control features of true experimental designs but lack random assignment to treatment and control groups.

Types

Distinctive categories or varieties of objects, individuals, or phenomenons characterized by specific common features.

Experimental Control

A component of scientific experiments where variables are kept constant to accurately assess the effect of the independent variable on the dependent variable.

Random Assignment

A method used in experiments to distribute participants randomly across various groups to ensure each group is similar at the start of the experiment.