Currently, Fixed Costs Are $810,000, the Unit Selling Price Is

question 25

Multiple Choice

Currently, fixed costs are $810,000, the unit selling price is $60, and the unit variable cost is $48.What would be the break-even sales (in units) , if the variable cost is increased by $2?

• A) 16,200 units
• B) 57,875 units
• C) 81,000 units
• D) 67,500 units

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Definitions:

Balance Sheet

A financial statement that shows a company's financial position, detailing assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial report that summarizes the revenues, expenses, and profits/losses incurred during a specific period of time.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Auditor

A professional who examines and verifies a company's financial statements and records to ensure accuracy and compliance with regulatory standards.