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:

Conflicting Assessment

A situation where there are discrepancies or different conclusions drawn from the same set of data or observations.

Unclear Communication

The conveyance of messages or information in a way that is difficult to understand, leading to confusion or misinterpretation.

Moaning

A long, low sound made by a person expressing physical discomfort or emotional distress.

Cultural Differences

Variations in the customs, beliefs, practices, and social behavior of different societies or communities.