Ch.11.2 Price

What is the formula for calculating unit price?

• Price x Units

• Price - Units

• Price / Units

• Units / Price

Why is unit price important?

• It helps businesses calculate costs.

• It allows customers to compare prices of products with different sizes.

• It determines how much tax to charge.

• It is only used for large purchases.

What is the break-even point?

• The point where profit is maximized.

• The point where revenue equals total costs.

• The point where all fixed costs are eliminated.

• The point where variable costs are greater than revenue.

If a product costs $5 to make and the business applies a $2 markup, what is the base price?

• $2

• $5

• $7

• $10

A product costs $20 to produce, and a company applies a 50% markup. What is the base price?

• $25

• $30

• $40

• $50

How do you calculate the selling price of a product?

• Cost price / Markup

• Cost price x Markup

• Cost price - Markup

• Cost price + Markup

Which of the following best defines fixed costs?

• Costs that vary directly with the number of units produced.

• Costs that remain the same regardless of the level of production.

• Costs that increase only during peak production periods.

• Costs that decrease as production increases.

What is the formula for calculating break-even point?

• Fixed Costs / (Selling Price - Variable Costs)

• Selling Price / (Fixed Costs + Variable Costs)

• (Fixed Costs + Variable Costs) / Selling Price

• Fixed Costs / (Variable Costs × Selling Price)

If a product is sold for $15 and costs $10 to produce, what is the markup?

• $5

• $10

• $15

• $25

A pack of 12 notebooks costs $9.60. What is the unit price per notebook?

• $0.60

• $0.80

• $1.20

• $1.50