If Unit Sales Prices Are $7 and Variable Costs Are

question 82

Multiple Choice

If unit sales prices are $7 and variable costs are $5 per unit, how many units would have to be sold to break-even if fixed costs equal $8,000?

• A) 2,000.
• B) 3,000.
• C) 4,000.
• D) 3,800.

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Definitions:

Tight Economies

Economies characterized by limited credit availability, slow economic growth, or high unemployment rates.

Lending Arrangements

Financial agreements where a lender provides funds to a borrower with the expectation that the funds will be repaid, often with interest.

Accounts Receivable Financing

An arrangement where a business sells its outstanding invoices to a third party at a discount in exchange for immediate cash.

Technologically Obsolete

The state in which a technology or product becomes outdated or no longer competitive due to advances in newer technologies.