A Company's Product Sells at $12 Per Unit and Has

question 22

Multiple Choice

A company's product sells at $12 per unit and has a $5 per unit variable cost. The company's total fixed costs are $98,000. The break-even point in units is:

• A) 5,158.
• B) 7,000.
• C) 8,167.
• D) 14,000.
• E) 19,600.

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Definitions:

Profit Centers

Individual units or divisions within a company that are responsible for generating their own revenue and profit.

Code of Ethics

A document outlining the principles and values that guide the behavior of individuals within an organization, setting standards for ethical conduct.

Laissez-Faire Economics

An economic philosophy of free-market capitalism that opposes government intervention. It suggests that economic systems function best when there is minimal interference by government in the affairs of the market.

Commerce Equilibrium

A state in which supply and demand within a marketplace are balanced, resulting in an efficient distribution of resources.