If a Firm Can Sell a Product for $40each,then What

question 22

Multiple Choice

If a firm can sell a product for $40each,then what is the volume needed to breakeven if the fixed cost of production is $125,000 and labor and material costs are $30.per item?

• A)125,000
• B)12,500
• C)4,167
• D)3,250

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Definitions:

Positive Correlation

A statistical relationship between two variables where an increase in one variable is associated with an increase in the other variable.

Influential Observations

Data points that have a significant impact on the result of a statistical analysis, potentially skewing the outcome.

Simple Linear Regression

A method in statistics that models the relationship between two variables by fitting a linear equation to the observed data.

Least-squares Regression Line

A straight line that best models the relationship between a dependent and independent variable by minimizing the sum of the squares of the vertical distances of the points from the line.