If a Firm Has a Sales Price Per Unit of $6.00

question 64

Multiple Choice

If a firm has a sales price per unit of $6.00, a variable cost per unit of $4.00, and a break-even point of 40,000 units, fixed costs are equal to ________.

• A) $27,000
• B) $90,000
• C) $80,000
• D) $50,000

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Definitions:

Issuer

An entity, such as a corporation or government, that develops and offers securities for sale to investors to raise capital.

Issued

Pertains to securities or other financial instruments that have been created and offered for sale to investors by a corporation or government entity.

Cash Received

The total amount of cash that an entity collects during a specific period, from various sources including sales, financing, or investments.

Bonds

Long-term debt securities issued by corporations or governments to raise capital, promising to pay the bearer a specified amount of interest over a set period until repayment of the principal.