Use the Following to Answer Questions

question 96

Multiple Choice

Use the following to answer questions
Ogallah Inc. sells its product for $9.25 per unit. The variable costs per units are $2.50 and total fixed costs are $452,250. If Ogallah buys new software for the production process at a cost of $55,250, variable costs will be reduced by 20%.
-If Ogallah raised the selling price of its product,what effect would that have on the breakeven point prior to and after the purchase of the computer,respectively?

• A)decrease/decrease
• B)increase/increase
• C)decrease/increase
• D)increase/decrease

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Definitions:

Protons

Positively charged subatomic particles found in the nucleus of an atom, fundamental to the chemical identity and properties of an element.

Ionic Bond

A chemical bond formed between two ions with opposite charges through the transfer of one or more electrons from one atom to another, resulting in an electrostatic attraction that holds the ions together.

Polar

A molecule or part of a molecule containing regions with slight charges due to uneven electron distribution, leading to interactions with other charged molecules.

Nonpolar

Describing molecules that do not have distinct positive and negative poles, resulting in a lack of electronegativity difference between the atoms.