Assume a Product Costs $5 Each

question 175

Multiple Choice

Assume a product costs $5 each. The variable cost per unit is currently $4, and fixed costs are $25,000. If the company can alter its production method such that variable costs fall to $3.50 and fixed costs rise to $30,000, what will happen to the breakeven point?

• A) It will fall.
• B) It will rise.
• C) It will remain the same.
• D) It will rise and fall later.

---

Definitions:

Delay Marriage

Delay marriage refers to the trend of individuals choosing to marry at a later age than traditionally observed, often for personal, educational, or financial reasons.

Cohabit

The act of living together and sharing a domestic life as a couple without being legally married.

Macro-level

A broad view or approach that examines large-scale social structures, processes, and systems, often used in the context of sociology and economics.

Demographic

Relating to the statistical characteristics of human populations, such as age, race, gender, and income, used especially for identifying consumer markets.