BETA Sells Its Single Product for $14 Per Unit, and Its

question 124

Multiple Choice

BETA sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:
Which of the following actions will move Point B higher on the y axis?

• A) An increase in the price of materials
• B) A decrease in the number of units sold
• C) Purchase of new equipment
• D) An increase in variable overhead cost

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Definitions:

Flammable Compounds

Substances that can ignite easily and burn rapidly, typically releasing heat and light.

Smoke Explosion

A sudden and intense combustion of suspended particles in a confined area, resulting from a mixture of air and combustible materials.

Backdraft

A dangerous explosive phenomenon that can occur when a fire is starved of oxygen and then oxygen is suddenly reintroduced, often during firefighting efforts.

Water Content

The amount of water contained in a material, expressed as a weight percentage of the material.