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

question 119

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 A to the right on the x axis?

• A) An increase in the number of units sold
• B) A decrease in the number of units sold
• C) An increase in the product's selling price
• D) An increase in the variable cost per unit

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Definitions:

Units

Basic quantifiable measures used to determine or express the amount of a product or service.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level.

Budgeting Formulas

Mathematical expressions used to allocate resources, plan future finances, and guide financial decision-making in the budgeting process.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.