If Fixed Costs Are $250,000,the Unit Selling Price Is $105,and

question 52

Multiple Choice

If fixed costs are $250,000,the unit selling price is $105,and the unit variable cost is $65,what is the break-even sales (in units) ?

• A)6,250 units
• B)2,381 units
• C)10,000 units
• D)3,846 units

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Definitions:

Linear Forecast

A mathematical technique used to predict future data points by analyzing the linear relationship between variables.

All-You-Can-Afford

A pricing strategy that bases the price on the customer's ability to pay, rather than fixed pricing.

Promotion-to-Sales Ratio

A metric that compares the cost of marketing and promotion activities to the revenue generated from sales.

Break-Even Points

The point at which total costs and total revenues are equal, meaning the business is neither making a profit nor a loss.