Given the Following Data, Compute the BEP in Units: Selling

question 201

Multiple Choice

Given the following data, compute the BEP in units: Selling price = $2.00
Variable cost = $0.75
Fixed cost = $250,000

• A) 333,334
• B) 200,000
• C) 125,000
• D) 400,000
• E) Cannot be determined with this information.

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Definitions:

Average Collection Period

The average time it takes for a company to receive payments owed by its customers, indicating the effectiveness of its credit and collection policies.

Year 2

Refers to the second year of a particular time frame, project, or financial period, often used in forecasting or comparing year-over-year performance.

Acid-Test Ratio

A stringent measure of liquidity that assesses a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Year 2

This term does not have a specific definition without context but generally refers to the second year of a given timeframe, study, or financial period.