A Firm Expects to Sell 25,000 Units of Its Product

question 125

Multiple Choice

A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable costs per unit are $5, total fixed costs must be:

• A) $65,000.
• B) $90,000.
• C) $125,000.
• D) $215,000.
• E) $275,000.

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Definitions:

Empathy

The ability to understand and share the feelings of another, putting oneself in their shoes.

Empathy-altruism Hypothesis

A theory suggesting that empathetic concern for others provokes an altruistic motivation to help, irrespective of personal gain.

Altruistic Behavior

Actions taken to benefit others without expecting personal gains or rewards.

Kin Selection

An evolutionary strategy that favors the reproductive success of an organism's relatives, even at a cost to the organism's own survival and reproduction.