Citizen Sells a Watch for $35 at a Fixed Cost

question 7

Multiple Choice

Citizen sells a watch for $35 at a fixed cost of $1 million per annum. Recent recession has seen jump in material cost to $20. What is the new break-even volume of watches per year?

• A) 28 571
• B) 50 000
• C) 66 667
• D) 6667
• E) 7000

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Definitions:

Absolutist View

A perspective that certain things, like moral truths, are fixed and unchangeable, regardless of context or circumstance.

Psychological Disorders

Mental health conditions characterized by disturbances in thought, emotion, or behavior that lead to distress or impairment in functioning.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors, such as self-induced vomiting, to prevent weight gain.

Induce Vomiting

A method of deliberately causing oneself or another person to vomit, often used in cases of ingestion of toxic substances, though medically not always recommended.