8. USAEO Business Case Preparation

Quantitative Thinking — Quiz

Test your understanding of quantitative thinking with 5 practice questions.

Practice Questions

Question 1

Which of the following best describes break-even analysis?

Question 2

A company has fixed costs of $500,000, a selling price of $50 per unit, and variable costs of $30 per unit. What is the break-even quantity?

Question 3

What is the primary purpose of sensitivity analysis in economics?

Question 4

If a company’s forecasted sales are 10,000 units and the sensitivity analysis shows a 10% decrease in demand, what would be the new forecasted sales?

Question 5

A product is sold for $40 and has a variable cost of $25. If a company wants to achieve a total profit of $75,000 and has fixed costs of $50,000, how many units must it sell?