Krazy Key Chains Sell for $1

question 49

Multiple Choice

Krazy Key Chains sell for $1.00 each. If variable costs are $0.50 each and total fixed costs are $2,500, how many key chains must be sold to break even?

• A) 5,000
• B) 10,000
• C) 2,500
• D) 1,500
• E) 2,367

---

Definitions:

Franchise

A business model that allows individuals or entities to operate a business using the branding and operational model of an established company.

Sole Proprietorship

A type of business entity owned and operated by one individual, with no legal distinction between the owner and the business.

Organizational Flexibility

The ability of a company or organization to adapt quickly to changes in its environment, including market trends, technologies, and internal dynamics.

Limited Liability

A legal structure where an individual's financial risk is limited to a fixed amount, typically the value of their investment in a company.