Fixed Costs for a Product Are $60,000

question 12

Multiple Choice

Fixed costs for a product are $60,000.The product itself sells for $4.00 and it costs $1.00 to make each product.How will the break-even point for the product change if the variable cost per unit goes up to $1.50?

• A)The break-even point will increase by 4000.
• B)The break-even point will increase by 24,000.
• C)The break-even point will decrease by 4000.
• D)The break-even point will increase by 20,000.

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Definitions:

Medulla

The base of the brainstem, controlling vital bodily functions such as breathing, heart rate, and blood pressure.

Coma

A state of unconsciousness in which a person cannot be awakened; fails to respond normally to painful stimuli, light, or sound; lacks a normal wake-sleep cycle; and does not initiate voluntary actions.

Life Support

Medical equipment that sustains, extends, or replaces vital bodily functions, often used in critically ill or comatose patients.

Occipital Lobe

The region of the brain located at the back of the head, responsible for processing visual information.