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:

Resting Potential

The electrical potential of a neuron when it is not actively sending a signal, representing a state of readiness.

Synaptic Gaps

Small spaces between neurons where neurotransmitters are released to transmit signals from one neuron to another.

Neurotransmitter Receptor Sites

Specific locations on the surface of neurons that are designed to receive and respond to chemical messengers known as neurotransmitters.

Axon Terminals

The distal terminations of the branches of an axon, responsible for releasing neurotransmitters into the synapse to communicate with other neurons.