Arthur Company Had the Following Data for the Year Just

question 52

Multiple Choice

Arthur Company had the following data for the year just ended:
$\begin{array}{|l|r|}\hline \text { Sales } & 4,000 \text { units } \\\hline \text { Sales price } & \$ 60 \text { per unit } \\\hline \text { Variable cost } & \$ 18 \text { per unit } \\\hline \text { Fixed costs } & \$ 42,000 \\\hline\end{array}$


-If the company's fixed costs decrease by 20% next year,all other factors remaining the same,by how much will the break-even level change compared to that of the current year,rounded to the nearest whole unit?

• A) 200-unit increase.
• B) 440-unit decrease.
• C) 200-unit decrease.
• D) No change in the break-even point.

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Definitions:

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, responsible for focusing most of the light that enters the eye.

Visual Process

The series of steps by which visual information is taken in by the eyes and interpreted by the brain to form visual perceptions.

Light Rays

Streams of photons that exhibit both wave-like and particle-like properties, responsible for making the phenomena of sight possible.

Pupil

The black circular opening in the center of the iris of the eye, which regulates the amount of light that enters.