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:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to a learned response.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the subject to associate certain behaviors with consequences.

Emotional Processing Theory

A framework suggesting that emotional health is related to the manner in which an individual deals with emotional experiences, particularly traumatic ones.

Exposure-Based Methods

Therapeutic techniques that involve the deliberate exposure of a patient to feared objects, situations, or memories to desensitize them and reduce their anxiety.