A Product Sells for $30 Per Unit and Has Variable

question 107

Multiple Choice

A product sells for $30 per unit and has variable costs of $18 per unit.The fixed costs are $720,000.If the variable costs per unit were to decrease to $15 per unit,fixed costs increase to $900,000,and the selling price does not change,break-even point in units would:

• A)Increase by 20,000.
• B)Equal 6,000.
• C)Increase by 6,000.
• D)Decrease by 20,000.
• E)Not changE.Current break-even point in units = $720,000/($30 - $18)= 60,000 units

---

Definitions:

Resistance Temperature Detectors

Sensors that measure temperature by correlating the resistance of the RTD element with temperature.

Thermocouples

Sensing devices used to measure temperature, consisting of two dissimilar metal wires joined at one end, producing a voltage proportional to temperature difference.

Reed Relay

A type of relay that uses a pair of magnetic reeds as the switching mechanism, often enclosed in a glass tube to protect against external magnetic fields and contaminants.

Permanent Magnet

A material that maintains a constant magnetic field without the need for electrical power.