At a Break-Even Point of 400 Units Sold, Variable Expenses

question 115

Multiple Choice

At a break-even point of 400 units sold, variable expenses were $4,000 and fixed expenses were $2,000. What will the 401st unit sold contribute to profit?

• A) $0
• B) $5
• C) $10
• D) $15

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Definitions:

Rent-Seeking Behavior

denotes efforts to increase one's share of existing wealth without creating new wealth, often through manipulation or exploitation of the political environment.

Principal-Agent Problem

A dilemma in which an agent, acting on behalf of a principal, may have incentives to act in their own interest rather than in the best interest of the principal.

American Winemakers

Individuals or companies in the United States that are engaged in the production of wine, contributing to the country's wine industry.