Jacob Inc Has Fixed Costs of $240,000, the Unit Selling Price

question 43

Multiple Choice

Jacob Inc. has fixed costs of $240,000, the unit selling price is $32, and the unit variable costs are $20. What are the old and new break-even sales (units) if the unit selling price increases by $4?

• A) 7,500 units and 6,667 units
• B) 20,000 units and 30,000 units
• C) 20,000 units and 15,000 units
• D) 12,000 units and 15,000 units

Calculate the revenue required to achieve a specific net income.

Analyze how changes in production capacity affect financial outcomes.

Understand how to manage costs to maintain profitability under varying conditions.

Evaluate the financial consequences of adjustments in selling price and cost structures.

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Definitions:

Midbrain

A portion of the brainstem involved in vision, hearing, motor control, sleep/wake, arousal (alertness), and temperature regulation.

Pineal Gland

A small endocrine gland in the brain that produces melatonin, a hormone that regulates sleep patterns.

Cerebral Aqueduct

A narrow channel located in the brain that connects the third ventricle to the fourth ventricle, allowing the flow of cerebrospinal fluid.

Interventricular Foramen

Openings that allow communication between the right and left ventricles of the heart, crucial for maintaining proper cardiac function.