Suppose You Are the Owner of a Picture Frame Store

question 53

Multiple Choice

Suppose you are the owner of a picture frame store and you wish to calculate how many pictures you must sell to cover your fixed and variable costs at a given price.Let's assume that the demand for your pictures is strong,so the average price customers are willing to pay for each picture frame is $120.Also,suppose your fixed costs (FC) total $32,000 (real estate taxes,interest on a bank loan,etc. ) and unit variable cost (UVC) for a picture frame is $50 (labor,glass,frame,and matting) .If your picture frame store sold 2,000 picture frames,what would your profit (or loss) be?

• A)a loss of $32,000
• B)$0-only able to break-even
• C)$100,000 profit
• D)$108,000 profit
• E)$132,000 profit

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Definitions:

Pelvic or Fetal Ultrasound

A non-invasive imaging technique used to observe the developing fetus or pelvic organs using high-frequency sound waves.

Electron

A minute particle of matter charged with the smallest known amount of negative electricity; opposite of proton.

Negative Electricity

An outdated term historically used to describe what is now known as the flow of electrons, or electric current, particularly in the context of static electricity.

Proton

A subatomic particle found in the nucleus of an atom, carrying a positive electrical charge.