Keene, Inc

question 22

Multiple Choice

Keene, Inc.produces flash drives for computers, which it sells for $20 each.Each flash drive costs $6 of variable costs to make.During March, 1,000 drives were sold.Fixed costs for March were $4.90 per unit for a total of $4,900 for the month.If variable costs decrease by 10%, what happens to the break-even level of units per month for Keene?

• A)It is 10% higher than the original break-even point.
• B)It decreases about 14 units.
• C)It decreases about 35 units.
• D)It depends on the number of units the company expects to produce and sell.

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Definitions:

Emotional Labor

The process of managing feelings and expressions to fulfill the emotional requirements of a job. This often involves regulating one's emotions to meet professional demands.

Emotional Display Rules

Cultural norms that dictate the appropriate expressions of emotion in various situations.

Emotions

Complex psychological states involving thoughts, feelings, and physiological changes that influence behavior and perception.

Beliefs

The attitudes or convictions that an individual holds to be true, often forming the basis for behavior and decision-making.