Fixed Costs for a Product Are $30,000

question 94

Multiple Choice

Fixed costs for a product are $30,000.The product itself sells for $3.00 and it costs $1.50 to make each product.How can the plant decrease the break-even point by 5000 units?

• A)Increase P, the price of the item, by $0.50.
• B)Increase TFC, the fixed costs for item, by $5000.
• C)Decrease P, the price of the item, by $0.50.
• D)Decrease TFC, the fixed costs for item, by $5000.

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Definitions:

Organizational Problems

Issues or challenges within a company that affect its operations, culture, or performance.

Feedback

Information provided regarding aspects of one's performance or understanding, often used as a basis for improvement or corrective action.

Internal Force

Forces that act within the object or system whose motion is being investigated, often responsible for changes in the shape or state of the object.

Customers

Individuals or entities that purchase goods or services from a business, forming the basis of its revenue and market success.