Suppose you are the owner of a picture frame store.Let's assume that the average price customers are willing to pay for each picture frame is $120.Also,suppose your fixed costs (FC)total $32,000 (real estate taxes,interest on a bank loan,etc. )and unit variable cost (UVC)for a picture frame is $40 (labor,glass,frame,and matting).Figure 13-10 above shows that by selling 200 pictures,your picture frame store will
A)break even.
B)earn a profit.
C)incur a loss.
D)have no fixed costs.
E)have no variable costs.

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The Answer of Suppose you are the owner of a picture frame store.Let's assume that the average price customers are willing to pay for each picture frame is $120.Also,suppose your fixed costs (FC)total $32,000 (real estate taxes,interest on a bank loan,etc. )and unit variable cost (UVC)for a picture frame is $40 (labor,glass,frame,and matting).Figure 13-10 above shows that by selling 200 pictures,your picture frame store will
A)break even.
B)earn a profit.
C)incur a loss.
D)have no fixed costs.
E)have no variable costs.

Suppose You Are the Owner of a Picture Frame Store