Obtuse Company's Fixed Costs Total $150,000, Its Variable Cost Ratio

question 27

Multiple Choice

Obtuse Company's fixed costs total $150,000, its variable cost ratio is 60% and its variable costs are $4.50 per unit. Based on this information, the break-even point in units is:

• A) 50,000.
• B) 37,500.
• C) 33,333.
• D) 100,000.

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Definitions:

Gluteus Medius

A muscle located on the outer surface of the pelvis, involved in the rotation and abduction of the thigh.

Vastus Lateralis

A muscle located on the side of the thigh, part of the quadriceps group, responsible for extending the knee.

Psoas Major

A large muscle in the human body that connects the lower spine to the upper thigh, crucial for hip flexion.

Rectus Femoris

A muscle in the quadriceps group that extends the knee and flexes the thigh at the hip.