Using the Variable Cost Concept Determine the Selling Price for 30,000

question 77

Multiple Choice

Using the variable cost concept determine the selling price for 30,000 units using the following data: Variable cost per unit $15.00, total fixed costs $90,000 and desired profit $150,000.

• A) $10
• B) $15
• C) $8
• D) $23

---

Definitions:

Externalities

Economic side effects or by-products that affect an uninvolved third party; can be either positive or negative.

Public Goods

Items that are non-excludable and non-rivalrous, meaning they can be enjoyed by everyone, regardless of whether they contribute to their provision.

Protective Function

Activities carried out by the government to safeguard the economy and its agents, such as regulation and enforcement.