The __________ Is Calculated by Dividing Total Fixed Costs by Price

question 5

Multiple Choice

The __________ is calculated by dividing total fixed costs by price minus variable costs.

• A)Current ratio.
• B)Break-even point.
• C)Economic order quantity.
• D)Net margin.
• E)Inventory turnover ratio.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity produced, indicating the cost on average of producing each unit.

Mixers

Devices or software used to blend or combine various audio or other elements into a coherent whole.

Cakes

Baked desserts that are usually sweet, made from ingredients such as flour, sugar, and eggs.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm operates on a larger scale due to inefficiencies that arise.