Wardley Corporation Sells Its Product for $40

question 96

Multiple Choice

Wardley Corporation sells its product for $40.The variable costs are $18 per unit.Fixed costs are $16,000.The company is considering the purchase of an automated machine that will result in a $2 reduction in unit variable costs and an increase of $5,000 in fixed costs.Which of the following is true about the break-even point in units?

• A)It will remain unchanged.
• B)It will decrease.
• C)It will increase.
• D)It cannot be determined from the information provided.

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Definitions:

Preference

A predisposition or inclination towards a particular choice or action among various alternatives.

Conflict Resolution

Strategies and processes used to address and resolve disputes, disagreements, or differences among project stakeholders or team members.

Default Approach

The standard or automatic method of proceeding in a situation, often used when no specific alternative has been chosen.

Project Managers

Professionals responsible for planning, executing, and closing projects, ensuring goals are met within constraints.