A Product Sells for $200 Per Unit,and Its Variable Costs

question 46

Multiple Choice

A product sells for $200 per unit,and its variable costs are 65% of sales.The fixed costs are $420,000.What is the break-even point in sales dollars?

• A)$2,100.
• B)$6,000.
• C)$420,000.
• D)$646,154.
• E)$1,200,000.

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Definitions:

Blood

A vital liquid flowing in the bodies of many types of animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those same cells.

Prepuce

The fold of skin that covers the head of the penis in uncircumcised males and the clitoral hood in females; also known as foreskin in males.

Circumcision

The surgical removal of the foreskin from the male penis, often for religious, cultural, or medical reasons.

Cowper's Glands

Small glands located on each side of the urethra in males that produce a fluid to lubricate and neutralize the acidity of the urethra before ejaculation.