If Fixed Costs Are $400,000, the Unit Selling Price Is

question 93

Multiple Choice

If fixed costs are $400,000, the unit selling price is $25, and the unit variable costs are $15, what is the break-even sales (units) if the variable costs are increased by $2?

• A) 50,000 units
• B) 30,770 units
• C) 40,000 units
• D) 26,667 units

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Definitions:

Equilibrium GDP

The point at which the aggregate supply and aggregate demand within an economy are equal, indicating a state of economic balance.

Recessionary Gap

The difference between the actual output of an economy and its potential output, occurring during periods of economic downturn.

Equilibrium GDP

The level of Gross Domestic Product (GDP) at which aggregate supply equals aggregate demand.

Full Employment GDP

The total market value of all final goods and services produced at a time when all available resources are fully employed.