The Cellar Door Currently Sells 9,620 Units a Month for Total

question 53

Multiple Choice

The Cellar Door currently sells 9,620 units a month for total monthly sales of $316,000.The company is considering replacing its current cash only credit policy with a net 30 policy.The variable cost per unit is $15 and the monthly interest rate is 1.5 percent.What is the switch break-even level of sales?

• A)9,711 units
• B)9,779 units
• C)9,814 units
• D)9,957 units
• E)9,889 units

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Definitions:

Spirometry

A pulmonary function test that measures the volume of air an individual can inhale and exhale, as well as the speed of the air movement through the lungs.

Minimum

The least or smallest amount or quantity possible, attainable, or required.

Cardiac Cycle

The sequence of events in the heart during one heartbeat, including contraction and relaxation phases that circulate blood throughout the body.

Electrocardiogram

A test that measures the electrical activity of the heart to check for heart disease.