A Product Sells for $200 Per Unit, and Its Variable

question 174

Multiple Choice

A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. What is the break-even point in dollar sales?

• A) $2,100.
• B) $6,000.
• C) $420,000.
• D) $646,154.
• E) $1,200,000.

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Definitions:

Natural Monopoly

A market structure where a single company can supply a product or service more efficiently than any potential competitor due to factors like economies of scale.

Government-Owned

Assets, businesses, or entities that are owned and operated by a government rather than by private individuals or companies.

Cable Television

A system of delivering television programming through coaxial cables or fiber-optic cables to consumers, offering a wide range of channels and services.

Natural Monopoly

A market situation where due to the high costs of entry or unique resources, one provider effectively serves the entire market, making competition unfeasible.