Queen,LtdHas One Product

question 44

Multiple Choice

Queen,Ltd.has one product.Its sales price and variable cost per unit are $25 and $20,respectively.Last year,Queen sold 25,000 units,which was 5,000 more than the break-even point.What were Queen's fixed expenses?

• A)$100,000
• B)$125,000
• C)$300,000
• D)There is not enough information to answer the question.

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Definitions:

Production Day

A day scheduled for the manufacture or creation of goods within an industrial or production setting.

Nonconforming Transistors

Transistors that do not meet the predefined standards or specifications.

Electronics Company

A business involved in the manufacturing, design, development, or selling of electronic devices and components.

Lower Control Limit

The threshold in control charts below which the process variability is considered to be in control and acceptable.