If a Firm's Total Fixed Cost Is $400,000 and Its

question 24

Multiple Choice

If a firm's total fixed cost is $400,000 and its fixed cost contribution per unit is $10, its break-even in units is:

• A) 30,000.
• B) 40,000
• C) 10,000.
• D) 20,000.
• E) Cannot be determined with this information.

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Definitions:

Open-book Management

A management approach where companies share financial and operational information with all employees to involve them in decision making.

Empower Employees

The process of giving staff members the authority, tools, and information they need to make decisions and contribute to the company's success.

Financial Reports

Official records that detail a company's financial performance over a specified period, including income statements, balance sheets, and cash flow statements.

Compressed Work-week

An alternative work schedule that allows employees to work their full required hours within fewer days per week, often resulting in longer daily hours but a shorter workweek.