A Company Has Total Fixed Cost of $120,000

question 223

Multiple Choice

A company has total fixed cost of $120,000. Its variable cost per unit is $2.00 and its price per unit is $3.50. The break-even point in units is:

• A) 60,000.
• B) 80,000.
• C) 34,286.
• D) 21,818.
• E) Cannot be determined from the information provided.

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Definitions:

Hue

A color or shade, particularly one that indicates the degree to which a stimulus can be described as similar to or different from stimuli that are described as red, green, blue, and yellow.

Iris

The colored part of the eye that controls the size of the pupil and thus the amount of light that enters the eye.

Pupil

The adjustable opening in the center of the eye through which light enters, its size regulated by the iris.

Sclera

The tough, white outer layer (coat) of the eyeball that, along with the cornea, helps to maintain the shape and protect the interior of the eye.