Assume a Product Costs $5 Each

question 92

Multiple Choice

Assume a product costs $5 each.The variable cost per unit is currently $4,and fixed costs are $25,000.If the company can alter its production method such that variable costs fall to $3.50 and fixed costs rise to $30,000,what will happen to the breakeven point?

• A)It will rise and fall later.
• B)It will rise.
• C)It will remain the same.
• D)It will fall.

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Definitions:

Dichotomy Corollary

A principle in psychology, particularly within George Kelly's personal construct theory, suggesting that a person's construction system is composed of dichotomous constructs, meaning it is organized into two mutually exclusive categories.

Bipolar

A disorder characterized by episodes of mood swings ranging from depressive lows to manic highs.

Personality Theory

A branch of psychology that attempts to explain patterns of thoughts, feelings, and behaviors that make a person unique, through various theoretical perspectives.

Organizational Corollary

A principle related to how individuals structure and organize their perceptions and cognitions in a complex environment.