Lightfoot Company Sells Its Product for $55 and Has Variable

question 46

Multiple Choice

Lightfoot Company sells its product for $55 and has variable costs of $30 per unit. Total fixed costs are $25,000. What will be the effect on the breakeven point if variable costs increase by 10% due to an increase in the cost of direct materials?

• A) It will increase by approximately 136 units.
• B) It will increase by approximately 242 units.
• C) It will decrease by approximately 136 units.
• D) It will decrease by approximately 242 units.

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Definitions:

Optic Disk

The point in the back of the eye where the optic nerve connects to the retina, devoid of photoreceptors.

Visual Fields

The total area in which objects can be seen in the peripheral vision while the eye is focused on a central point.

Optic Nerve

The nerve that transmits visual information from the retina to the brain.

Lens

A transparent structure in the eye that focuses light onto the retina to create clear images.