For a Firm That Would Break Even at $200 000

question 87

Multiple Choice

For a firm that would break even at $200 000 sales and earn a profit of $30 000 at sales of $250 000, which of the following statements is always true?

• A) Fixed costs are $80 000.
• B) The selling price is $2 per unit.
• C) Profit at sales of $300 000 would be $80 000.
• D) The contribution margin is 60 per cent of sales.

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Definitions:

Major Archetypes

Fundamental, universal symbols or themes that recur across cultures and literature, often representing common aspects of human experience.

Persona

A social facade or mask that an individual presents to the outside world, as part of Jungian psychology, reflecting part of the unconscious personality.

Anima and Animus

Jungian concepts referring to the unconscious feminine side of a man (anima) and the unconscious masculine side of a woman (animus) that influence their behavior.

Ego

A component of the human psyche in psychoanalytic theory that mediates between the conscious, the unconscious, and the external world.