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  • Name: SAP Certified Application Associate - SAP SuccessFactors Recruiting: Candidate Experience 3H/2021
  • Exam Code: C-THR84-2105
  • Certification: SAP Certified Application Associate
  • Vendor: SAP

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NEW QUESTION: 1
Intelligent Semiconductor, a diversified technology company, is evaluating the sales of its cadmium silicon transistor coils, and has identified the following information:
Fixed production costs for these transistors are $800,000
Average sales price per unit is $505.50
Break-even quantity of 4,084
Which of the following best describes the average variable cost for this product?
A. $20.84
B. The average variable cost cannot be determined from the information provided.
C. $309.61
D. $195.89
E. $424.16
Answer: C
Explanation:
Explanation/Reference:
Explanation:
To calculate the break-even quantity for a product, use the following equation: {Fixed operating costs/[avg.
sales price per unit - variable cost per unit]}. To determine the average variable cost of this product, we must rearrange the standard equation using algebra, in a manner such that the resulting equation resembles the following: {[$800,000/4,084] + X = $505.50}. This equation is further rearranged into the following: {$195.89 + X = $505.50}. Finally, the ending equation becomes:{X = $505.50 - $195.89}. Solving for X yields an average variable cost per unit of $309.61.