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.

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Definitions:

Passion

A very strong feeling about a person or thing; an intense emotion, enthusiasm, or desire for something.

Fuel Love

An expression suggesting that certain actions or behaviors can intensify or sustain romantic feelings between individuals.

Ups And Downs

A phrase describing the positive and negative events or periods experienced in life or a particular situation.

Romantic Love

A deep emotional and affectionate attachment to a partner, often characterized by passion, intimacy, and commitment.