Joseph Company Has Variable Costs of $80 Per Unit,total Fixed

question 126

Multiple Choice

Joseph Company has variable costs of $80 per unit,total fixed costs of $200,000,and a break-even point of 5,000 units.If the variable cost per unit decreases by $8,how many units must Joseph Company sell to break even?

• A) 2,778 units
• B) 2,500 units
• C) 6,250 units
• D) 4,167 units

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Definitions:

Average Flow Time

The average time that it takes for a task, workpiece, or process to be completed in a system.

Cycle Inventory

The portion of inventory available to meet normal demand during an ordering cycle.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price.

Cycle Inventory

The average amount of inventory kept on hand to meet normal demand between the receipt of inventory deliveries.