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

---

Definitions:

True Locality Rule

A legal principle ensuring that a case is tried in the jurisdiction where the events in question occurred.

Standard Of Care

The degree of care and caution required by law, which a reasonable person should take in a specific situation.

Socioeconomic Character

Descriptive attributes of individuals or groups based on their economic and social position in society.

Unqualified Opinion

An opinion issued by an auditor that indicates that the financial records of a firm are an accurate reflection of the firm’s financial status.