A Company Sells Its Product for $30 and Has a Variable

question 128

Multiple Choice

A company sells its product for $30 and has a variable operating cost of $15 per unit and produces a $10 per unit contribution to fixed costs. If the firm has total fixed costs of $30,000, what is the quantity of units that the firm should produce in order to breakeven?

• A) 2000 units
• B) 3000 units
• C) 2020 units
• D) 1900 units

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Definitions:

Import Quotas

Limits set by a government on the amount or number of goods that can be imported into a country over a set period of time.

Foreign Sovereign Immunities Act

A U.S. law that sets limitations on lawsuits against foreign governments in U.S. courts, establishing certain conditions under which foreign sovereigns are not immune from litigation.

Jurisdiction

The authority given to a legal body to administer justice within a defined field of responsibility.

ICJ

Stands for the International Court of Justice, which is the principal judicial organ of the United Nations, responsible for settling legal disputes between states and giving advisory opinions.