A Firm Has $50,000 in Fixed Costs, a Selling Price

question 115

Multiple Choice

A firm has $50,000 in fixed costs, a selling price of $25 per unit, and variable costs of $5 a unit. If the fixed costs increase to $60,000:

• A) Breakeven volume will increase.
• B) Breakeven volume will decrease.
• C) Profits will be increased.
• D) Selling price will be decreased.

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Definitions:

Claustrophobia

An anxiety disorder characterized by an irrational fear of being in enclosed or narrow spaces.

Dissociative Symptom

A manifestation of dissociation, such as a disruption in memory, identity, emotion, perception, or consciousness, often due to psychological trauma.

Acute Stress Disorder

A mental health condition characterized by the development of severe anxiety, dissociation, and other symptoms that occur within a month after exposure to a traumatic event.

Trauma

A deeply distressing or disturbing experience, which can lead to long-lasting psychological impacts.