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

question 14

Multiple Choice

Nickelby 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: Which of the following actions will move Point B lower on the y axis?

• A) An increase in the price of materials.
• B) A decrease in the number of units sold.
• C) Paying sales staff a commission instead of salary.
• D) An increase in variable overhead cost.

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Definitions:

Individuate

The process of developing a distinct, integrated personality or self, often associated with adolescent development and psychological differentiation from others.

System Justification

A theory suggesting that people have a psychological need to defend and justify the status quo even at the expense of personal or group interest.

Social Identity

The part of an individual's self-concept that derives from their membership in a social group, including the values and emotional significance attached to that membership.

Social Comparison

A psychological process where individuals evaluate their own opinions and abilities by comparing themselves to others.