The Following Information Is for Joshua Corporation If Total Fixed Costs Increased to $394,850, Then Break- Even

question 1

Multiple Choice

The following information is for Joshua Corporation: $\begin{array}{ll}\text { Tot al fixed costs } & \$ 333,500 \\\text { Variable costs per unit } & \$ 99 \\\text { Selling price per unit } & \$ 154\end{array}$ If total fixed costs increased to $394,850, then break- even volume in dollars would increase by:

• A) 34.3%
• B) 12.3%
• C) 18.4%
• D) 10.0%

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Definitions:

Illusory Correlations

The cognitive bias of perceiving a relationship between variables (typically people, events, or behaviors) even when no such relationship exists.

Cognitive Maps

Mental representations of physical locations, allowing an individual to visualize paths or navigate spaces they have experienced.

Algorithms

Step-by-step procedures or formulas for solving problems or completing tasks, often used in computing and mathematical problem-solving.

Base-Rate Information

Statistical information about the general frequency of an event or characteristic within a relevant population.