Multiple choice

Question 1 

A highly automated plant would generally have:

A. more variable than fixed costs.

B. more fixed than variable costs.

C. all fixed costs.

D. all variable costs.

Question 2

If a firm has fixed costs of $30,000, a price of $4, and a breakeven point of 15,000 units, the variable cost per unit is:

A. $5.

B. $2.

C. 50 cents.

D. $4.

 Question 3 

If a firm has fixed costs of $20,000, variable cost per unit of 50 cents, and a breakeven point of 5,000 units, the price is:

A. $2.50.

B. $5.

C. $4.

D. $4.50.

 Question 4 

If a firm has a price of $4, variable cost per unit of $2.50, and a breakeven point 

,000 units, fixed costs are equal to:

A. $13,333.

B. $10,000.

C. $30,000.

D. $50,000.