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Questions -
Q1. Company ABC sells widgets with a per-unit sales price of $5.00 and variable costs per unit of $4.00. ABC's fixed costs are $1,000 per month. How many units must ABC sell to earn a profit of $7,500?
A. 8,500
B. 750
C. 42,500
D. 1,000
Q2. Which statement correctly describes variable costs?
A. None of the above.
B. Variable costs are constant in total and the per-unit cost decreases with production
C. Variable costs are constant per unit and constant in total
D. Variable costs are constant per unit and the total increases with production
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Remember that your rating will effect what your pay increase will be or if you'll get a promotion or bonus for the year? Explain your answer.
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