If a Firm Has Fixed Costs of $50,000, a Variable

question 30

Multiple Choice

If a firm has fixed costs of $50,000, a variable cost per unit of $5 and sales price per unit of $20, what is the firm's breakeven point in units?

• A) 3,333 units
• B) 10,000 units
• C) 4,667 units
• D) 3,334 units

---

Definitions:

Taft-Hartley Act

A federal law enacted in 1947 that restricts the activities and power of labor unions, also known as the Labor Management Relations Act.

Wagner Act

Also known as the National Labor Relations Act of 1935, it is a foundational statute of United States labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Right-To-Work Laws

State laws that prohibit labor-management agreements requiring union membership as a condition of getting or keeping a job.

Constructive Discharge

Discriminatory action whereby an employee is demoted to a job with less pay, authority, or poorer working conditions than the job that person previously held or is subjected to supervisory harassment.