Nickleby Sells Its Single Product for $14 Per Unit, and Its

question 65

Multiple Choice

Nickleby sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows: If Nickleby increases its sales volume by 20%, what will happen to its breakeven point?

• A) It will decrease.
• B) It will increase.
• C) It will stay the same.
• D) Cannot be determined.

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Definitions:

Better Than Anticipated

A situation or outcome that exceeds previously set expectations or forecasts.

Systematic Thinking

Thinking that approaches problems in a rational and analytical fashion.

Analytical Fashion

Refers to a methodical approach in breaking down complex information or problems into simpler parts for better understanding and decision-making.

Step-By-Step

A methodical approach to problem-solving or task completion that involves breaking down the process into clearly defined and sequential stages.