Break-Even Analysis: Johnstone Corp

question 83

Multiple Choice

Break-even analysis: Johnstone Corp. wants to break even at 20,000 units on its only product. Its unit variable cost is $63.75, and its fixed cost is $742,000. What should be the company's unit selling price?

• A) $37.10
• B) $26.65
• C) $100.85
• D) $63.75

---

Definitions:

Exclusivity

A business strategy or condition where products or services are restricted to a specific group or area, often to maintain high prices or prestige.

Quality Focus

A business strategy emphasizing the importance of maintaining high standards in product or service offerings to meet customer satisfaction.

Geographic Span

The reach or coverage area of a company's operations or influence, often measured in terms of distance or market presence.

Service Leadership

A management approach focusing on delivering superior service to customers as a way to gain competitive advantage.