The Manhattan Company Sells Its One and Only Product for $89.00

question 97

Multiple Choice

The Manhattan Company sells its one and only product for $89.00 per unit.Variable costs per unit amount to $63.50,and total fixed costs are $3,697,500.If Manhattan increases its total fixed costs by $267,500 it can reduce variable costs by $5.00 per unit.How will this affect the breakeven point in units?

• A)The breakeven point will increase 48,415 units
• B)The breakeven point will decrease 15,000 units
• C)The breakeven point will increase 22,317 units
• D)The breakeven point will decrease 32,540 units

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Definitions:

Misrepresentation of Age

The act of intentionally providing a false age or date of birth, usually for the purpose of obtaining certain rights or privileges not available to one's true age.

Incompetent Person

Refers to an individual who is legally declared unable to handle their own affairs due to mental incapacity or illness.

Reasonable Value

The fair or market price of goods or services, considered to be a fair compensation in legal contexts.

Necessary Item

A good or service required for basic living or to fulfill certain legal obligations.