Lightfoot Company Sells Its Product for $55 and Has Variable

question 58

Multiple Choice

Lightfoot Company sells its product for $55 and has variable costs of $30 per unit. Total fixed costs are $25 000. What will be the effect on the breakeven point if variable costs increase by 10% due to an increase in the cost of direct materials?

• A)It will increase by approximately 136 units.
• B)It will decrease by approximately 136 units.
• C)It will increase by approximately 242 units.
• D)It will decrease by approximately 242 units.

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Definitions:

Salespeople

Individuals specializing in the sale and promotion of products or services, often employing various techniques to meet sales targets.

Evaluative Listening

A listening style where the listener analyzes or judges the content of a message, often assessing its truthfulness, usefulness, or relevance.

Emotion-Laden Words

Words specifically chosen to evoke emotional responses from a listener or reader to influence thoughts or actions.

Listening

The active process of receiving and understanding messages communicated by others, often emphasized as a key skill in effective communication and sales.