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

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Definitions:

Insurance

A financial arrangement that provides protection against potential loss to life, health, or property in exchange for premium payments.

Population Growth

The increase in the number of individuals in a population, commonly expressed as an annual percentage.

Annual Rate

The interest rate for a period of one year, often used to compare the yield on investments or the cost of loans.

Future Value

The value of an asset or amount of money at a specified future date, taking into account variables such as interest rates or returns on investment.