Suppose You Are the Owner of a Picture Frame Store

Multiple Choice

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.