If the Unit Sales Price Is $14, Variable Costs Are

question 131

Multiple Choice

If the unit sales price is $14, variable costs are $7 per unit and fixed costs are $42,000, how many units must be sold to earn an income of $250,000?

• A) 52,142.
• B) 41,715.
• C) 34,762.
• D) 29,796.

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Definitions:

Income Elasticity of Demand

A metric that gauges the sensitivity of demand for a product to shifts in the income of consumers.

Weekly Income

The total amount of earnings received by an individual or entity over the span of a week.

Bars of Chocolate

Solid blocks of chocolate that can vary in cocoa content, sweetness, and added ingredients, enjoyed as confectionary treats.

Change in Income

The variation, either increase or decrease, in the amount of money earned by individuals or households over time.