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:

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and dividend receiving potential.

Par Value

The face value of a bond or stock as stated by the issuing company, which is not indicative of its market value.

Consideration Transferred

The total amount of assets, liabilities, or equity given by an acquiring firm to obtain control of an acquired firm during a merger or acquisition.

Acquisition Business Combination

The process where one company takes over another and clearly establishes itself as the new owner, resulting in a consolidation of assets and liabilities under a single entity.