Parker Industries Is a Small Company with a Big Name!

question 5

Multiple Choice

Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China and sells them through its website. Parker's only overhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for website hosting. Currently, Parker imports the lights for $.99 each (including inbound shipping) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. If Parker found a comparable storage for $100 a month, what would happen?

• A) Fixed cost would decrease
• B) Variable cost would decrease
• C) Contribution margin would decrease
• D) Breakeven volume would increase

---

Definitions:

Elderly

Pertaining to individuals who are significantly beyond the middle age, often considered to be 65 years and older.

Delirium

An acute, often reversible, state of confusion characterized by impaired cognitive function, attention, and perception, usually resulting from an underlying medical condition.

Elderly

A term used to describe individuals of advanced age, typically characterized by specific social, health, and psychological characteristics.

Overweight Or Obese

Having excess body fat to the extent that it may have a negative effect on health, measured by body mass index (BMI).