Neucon Company Needs to Sell 6,000 Circuit Breakers to Break

question 2

Multiple Choice

Neucon company needs to sell 6,000 circuit breakers to break even. Its unit variable cost is $441, and its unit selling price is $800. What is the fixed cost of this company?

• A) $1,497,250
• B) $2,154,000
• C) $2,855,250
• D) $4,652,500

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Definitions:

Russell 2000

An index measuring the performance of approximately 2000 small-cap companies in the United States.

Large-cap Indexes

Large-cap Indexes track the performance of stocks from companies with large market capitalization, reflecting the overall health and trends of major corporations.

Nasdaq Composite

An index of all the stocks and similar investments listed on the Nasdaq stock market, often used as a benchmark for technology and biotech securities.

Modified Duration

A measure of the sensitivity of the price of a bond or a bond portfolio to a change in interest rates, adjusted for the possibility that the bond may be called before maturity.