Furr Friends sells kits for making personalized grave markers for pets. The company sells each kit for $25. The average variable cost for each kit is $10, and the total annual fixed costs for plant operation are $45,000. What is the break-even point in units?
A. 1,800
B. 2,500
C. 3,000
D. 4,500
E. 5,000
Answer: C
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A contra-asset account used to reduce accounts receivable to its net realizable value is known as a(n) ____________________
Fill in the blank(s) with correct word
Residual income should be used to evaluate an investment center rather than a cost or profit center.
Answer the following statement true (T) or false (F)
Secure Investments, Inc, a U.S. firm, expands into international markets through a joint venture. In this situation, Secure owns
a. all of the operation, and its profits and liabilities. b. all of the operation, and none of its profits and liabilities. c. none of the operation, and none of its profits and liabilities. d. part of the operation, and shares its profits and liabilities.
A college has contracted a construction company to build a bookstore for its new campus. In the context of factors of production, the heavy machinery and equipment used by the contractor in the construction process are referred to as _____.
A. assets B. human resources C. natural resources D. capital