The Firm Uses Activity-Based Costing and Has the Following Cost

question 105

Multiple Choice

The firm uses activity-based costing and has the following cost structure: selling price $50, batch cost $20 000, unit level costs $30 per unit, facility costs $120 000 and product costs $60 000. What is the break-even point in units?

• A) 6000
• B) 7000
• C) 9000
• D) 10 000

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Definitions:

Information Content Effect

The impact of news or information release on the financial markets, especially regarding the price of securities.

Share Price

The price of a single share of a company's stock, reflecting the market's value of the company at a given moment.

Unexpectedly High Earning

Financial results that surpass analysts' earnings predictions significantly, often leading to increased stock prices.

High Dividend Payout

A situation where a company pays a large portion of its earnings to shareholders in the form of dividends.