Assume the Following Cost Information for Marie Company If Fixed Costs Increased by 10% and Management Wanted to Selling

question 60

Multiple Choice

Assume the following cost information for Marie Company: $\begin{array}{ll}\text { Selling price per unit } & \$ 144 \\\text { Variable costs per unit } & \$ 80 \\\text { Total fixed costs } & \$ 80,000 \\\text { Tax rate } & 40 \%\end{array}$ If fixed costs increased by 10% and management wanted to maintain the original break- even point, then the selling price per unit would have to be increased to:

• A) $155.20
• B) $208.00
• C) $150.40
• D) $158.40

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Definitions:

Recognition

The cognitive process of identifying previously encountered information from a group of choices.

Cognitive Process

The cognitive process of gaining knowledge and comprehension via thinking, experiencing, and sensory perception.

Familiar

Well known from long or close association.

Gestalt School

A psychological approach emphasizing that the human mind perceives objects not by their individual parts but as whole structures or patterns.