A Small Publishing House Sold 25 000 Copies of 'All

question 5

Multiple Choice

A small publishing house sold 25 000 copies of 'All about Greyhounds' in paperback at $3 per book. Fixed costs were $18 000 and variable costs were $45 000. What is the break-even point in units?

• A) 3 000
• B) 5 000
• C) 10 000
• D) 15 000

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Definitions:

Cash Budget

A cash budget is a financial plan that estimates cash inflows and outflows over a specified period, often used by businesses to manage liquidity.

Payments Lag

Payments lag refers to the delay between the time when an expense is incurred and the time when the payment is actually made.

Cumulative Cash

The total amount of cash generated or accumulated over a period of time, often used in the context of a company's cash flow.

Bankers' Acceptances

Bankers' acceptances are short-term financial instruments issued by a company that banks guarantee; they are commonly used in international trade.