If Fixed Costs Are $450,000, the Unit Selling Price Is

question 153

Multiple Choice

If fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (units) if the unit selling price increases by $10?

• A) 6,000 units and 5,294 units
• B) 18,000 units and 6,000 units
• C) 18,000 units and 12,858 units
• D) 9,000 units and 15,000 units

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Definitions:

Federal Budget Deficits

The excess of federal government expenditures over its revenues within a given fiscal year, leading to borrowing or debt accumulation.

Government Spending

Expenditures made by the government sector on goods and services, including infrastructure, education, and security, to influence the economy.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Crowding In

The potential for government spending to stimulate private investment in an otherwise dead economy.