A Company Has Total Fixed Cost of $400,000

question 137

Multiple Choice

A company has total fixed cost of $400,000. Its fixed- cost contribution per unit is $10.00, and its price per unit is $5.00. What is the break-even point in sales dollars?

• A) $200,000.
• B) $2,000,000.
• C) $4,000,000.
• D) $800,000.
• E) Cannot be determined from the information provided.

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Definitions:

Unbalanced

Lacking equilibrium or stability in terms of emotional state, workload, resource distribution, or other areas affecting individuals or groups.

Balance Theory

A psychological theory suggesting that individuals strive for consistency among their beliefs, attitudes, and sentiments in interpersonal relationships.

Heider

Refers to Fritz Heider, an Austrian psychologist known for his contributions to attribution theory and balance theory within social psychology.

Balanced State

A condition of mental or emotional stability where stresses and forces are well managed or in equilibrium.