Ribco Company Ltd Makes and Sells Only One Product

question 72

Multiple Choice

Ribco Company Ltd makes and sells only one product. The unit contribution margin is $6, and the break-even point in unit sales is 24 000. What are the company's fixed expenses?

• A) $400 000
• B) $14 400
• C) $40 000
• D) $144 000

---

Definitions:

Discretionary Monetary Policy

Monetary policy actions that are based on the judgment of policymakers rather than set by predetermined rules, allowing flexibility in response to economic conditions.

Capitalistic Economy

An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit.

Government Intervention

Refers to actions taken by a government to affect the economy or society, which can include regulations, subsidies, taxes, and other policies designed to influence economic activities.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income, property, or sales.