Sutton Company Produces Flash Drives for Computers, Which It Sells

question 89

Multiple Choice

Sutton Company produces flash drives for computers, which it sells for $20 each.Each flash drive costs $6 of variable costs to make.During April, 1,000 drives were sold.Fixed costs for April were $4.20 per unit for a total of $4,200 for the month.If variable costs decrease by 10%, what happens to the break-even level of units per month for Sutton Company?

• A)It is 10% higher than the original break-even point.
• B)It decreases about 12 units.
• C)It decreases about 30 units.
• D)It depends on the number of units the company expects to produce and sell.

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Definitions:

Grid Cells

Neurons located in the brain's entorhinal cortex that activate when an animal is at multiple locations forming a grid-like pattern, crucial for spatial navigation.

Place Cells

Hippocampal neurons maximally responsive to specific locations in the world.

Head Direction Cells

Neurons located in several brain regions that increase their firing rates when an animal's head points in a specific direction, aiding in spatial orientation and navigation.

Orientation Cells

Neurons in the visual cortex of the brain that respond preferentially to objects of specific orientations, such as vertical or horizontal.