At a Break-Even Point of 400 Units,variable Costs Were $400

question 70

Multiple Choice

At a break-even point of 400 units,variable costs were $400 and fixed costs were $200.What will the 401^st unit sold contribute to operating profits before income taxes?

• A) $0.50
• B) $1.00
• C) $1.50
• D) $2.00

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Definitions:

Long-term Investments

Assets that a company intends to hold for more than one fiscal year, such as stocks, bonds, or real estate, with the expectation of generating long-term benefits.

Accrued Interest

Interest that has been earned but not yet paid or received in cash.

Semiannual Interest

Interest calculated or paid twice a year on loans, bonds, or savings accounts.

Accrued Interest

Interest that has been generated but remains unpaid.