A company with fixed costs of $200,000 per month believes that they have this holiday season's hot selling item, a towel that folds itself into a variety of shapes so you can turn your own home into a cruise ship cabin

They believe they can sell 100,000 units and need to determine a minimum price that will cover their fixed and variable costs, with the latter being $45 per unit.
A) $45.20
B) $46.50
C) $46.80
D) $47.00


Answer: D

Business

You might also like to view...

If payables turnover has increased significantly since the prior year, this is an indication that which of the following assertions for accounts payable might be violated?

A. Valuation and allocation. B. Completeness. C. Rights and obligations. D. Existence or occurrence.

Business

Which of the following is a false assumption made by many salespeople?

A. Price is the only factor in a buying decision. B. Unimportant benefits should be deemphasized. C. Benefits are very important to buyers. D. Psychological factors influence buying decisions. E. Wants and needs motivate buying decisions.

Business

A(n) _______ system is beneficial to a service desk because it can monitor a system for errors and then automatically attempt to correct those errors.

Fill in the blank(s) with the appropriate word(s).

Business

The most common type of logical sequencing between tasks is referred to as the:

A) Finish to start relationship. B) Finish to finish relationship. C) Start to start relationship. D) Start to finish relationship.

Business