Reference: 08-06
Arthur Company Had the Following Data for the Year

question 35

Multiple Choice

Reference: 08-06
Arthur Company had the following data for the year just ended: $$\begin{array} { | l | l | } \hline \text { Sales } & 4,000 \text { units } \\\hline \text { Sales price } & \$ 60 \text { per unit } \\\hline \text { Variable cost } & \$ 18 \text { per unit } \\\hline \text { Fixed costs } & \$ 42,000 \\\hline\end{array}$$
-If the company's fixed costs decrease by 20% next year, all other factors remaining the same, the break-even level will change from that of the current year by (rounded your final answer to the nearest whole unit) :

• A)200 unit decrease.
• B)no change in the break-even point in units.
• C)200 unit increase.
• D)440 unit decrease.

Understand the use of COUNT and COUNTA functions for data analysis.

Know how to use Excel to present and refine the visual appearance of data.

Understand manual and automatic calculation options in Excel.

Understand the concept of profit-sharing plans and their motivational aspects.

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Definitions:

Exchange Rate

The amount one currency is valued at when translated into another currency.

Kilogram

The base unit of mass in the International System of Units (SI), equivalent to 1,000 grams or approximately 2.20462 pounds.

Long-Run Exchange Rate

The exchange rate that reflects the underlying fundamentals of an economy over a longer period, free from short-term fluctuations.

Subsidiary

A company controlled by another company, often referred to as its parent company.