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If Fixed Costs Are $1,500,000, the Unit Selling Price Is

question 124

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If fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales required to realize an operating income of $200,000?


Definitions:

Positive Slope

A mathematical depiction of a line on a graph indicating an increase in the variable on the y-axis as the variable on the x-axis increases.

Total Revenue Curve

A graphical representation that shows the relationship between the total revenue a firm receives from selling its product and the quantity of the product sold.

Perfectly Competitive Firm

A company that cannot control market prices and must therefore accept the prevailing market price for its products or services.

Short-run

A period in economics during which some factors of production or inputs are fixed, unable to be changed to respond to market conditions.

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