Company X Has Variable Costs Per Unit of $20,fixed Costs

question 138

Multiple Choice

Company X has variable costs per unit of $20,fixed costs of $300,000,and a break-even point in units of 60,000 units.If the sales price per unit decreases by $2 and the variable cost per unit decreases by $2,what would happen to the break-even point?

• A) Break-even point increases.
• B) Break-even point in dollars decreases.
• C) Break-even point stays the same.
• D) Break-even point in dollars decreases and break-even point in units stays the same.

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Definitions:

Apparent Brightness

The perceived intensity of light from a celestial object, as observed from Earth.

Objects Around

Refers to the physical items or entities in one's immediate environment, often discussed in the context of perception and cognitive processing.

Feature Detector

neurons in the brain that respond to specific features of a stimulus, such as lines, edges, or movement.

Vision

The capability to understand the nearby surroundings through light in the visible spectrum that is reflected off of objects in the area.