The Following Information Is for Donald Corporation If Total Fixed Costs Increased to $394,850, Then Break-Even Volume

question 7

Multiple Choice

The following information is for Donald Corporation: $\begin{array}{lr}\text { Total fixed costs } & \$ 333,500 \\\text { Variable costs per unit } & \$ 99 \\\text { Selling price per unit } & \$ 154\end{array}$ If total fixed costs increased to $394,850, then break-even volume in dollars would increase by _____.

• A)10.0%
• B)12.3%
• C)18.4%
• D)34.3%

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Definitions:

Current Assets

Assets expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business.

Federal Unemployment Taxes

Taxes paid by employers to fund the federal government's oversight of the state unemployment insurance programs.

Gross Pay

The total earnings of an employee for a payroll period.

Discounted Note

A type of debt instrument that is sold for less than its face value and pays its face value at maturity, reflecting the discount as interest.