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:

External Factors

Elements outside an individual or organization that can influence its performance or outcomes.

Internal Attribution

The process of assigning the cause of behavior to something within the individual, such as personality traits or feelings.

Unstable Attribution

The belief that an individual's behavior or performance is due to changeable, situational factors rather than fixed traits.

Actor/observer Bias

The tendency to attribute one's own actions to external factors while attributing others' actions to their personality.