Figure 11-6a
-Suppose you are the owner of a picture frame store.Assume that the average price customers are willing to pay for each picture frame is $120.20.20.20.20.20.20.20.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 11-6a 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.

Question

Figure 11-6a 
-Suppose you are the owner of a picture frame store.Assume that the average price customers are willing to pay for each picture frame is $120.20.20.20.20.20.20.20.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 11-6a 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.

Quizplus · Accepted Answer

The Answer of Figure 11-6a 
-Suppose you are the owner of a picture frame store.Assume that the average price customers are willing to pay for each picture frame is $120.20.20.20.20.20.20.20.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 11-6a 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.

Figure 11-6a -Suppose You Are the Owner of a Picture Frame Store.Assume