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:

CD-Rom Drives

Hardware devices used to read and sometimes write data to CD-ROM discs, prevalent in computing before cloud storage and USB.

Imports

Goods or services brought into one country from another for the purpose of sale or use.

United States

A country located primarily in North America, consisting of 50 states and a federal district.

World Price

The international market price of a good or service, determined by global supply and demand conditions.