If Monthly Fixed Costs Are $21,000 and the Contribution Margin

question 14

Multiple Choice

If monthly fixed costs are $21,000 and the contribution margin ratio is 42%,the monthly sales volume required to break even is:

• A)$8,820.
• B)$50,000.
• C)$78,000.
• D)$39,207.

Differentiate between short-run and long-run cost structures and their implications for firm decision-making.

Recognize the relevance and implications of sunk costs and the sunk cost fallacy in economic decision-making.

Interpret diagrams related to cost curves, including total costs, average costs, and marginal costs.

Understand economies and diseconomies of scale and their impact on firm costs over different ranges of output.

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