It Costs $50,000 to Start a Production Process

question 96

Multiple Choice

It costs $50,000 to start a production process. Variable cost is $25 per unit and revenue is $45 per unit. What is the break-even point?

• A) 1000 units
• B) 1111 units
• C) 2000 units
• D) 2500 units

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Definitions:

Ad Valorem

A term describing taxes or duties calculated as a percentage of the value of goods or property.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified time frame.