Lightfoot Company Sells Its Product for $55 and Has Variable

question 10

Multiple Choice

Lightfoot Company sells its product for $55 and has variable costs of $30 per unit. The total fixed costs are $25,000. What will be the effect on the breakeven point in units if variable costs increase by $5 due to an increase in the cost of direct materials?

• A)It will increase by 250 units.
• B)It will decrease by 250 units.
• C)It will decrease by 167 units.
• D)It will increase by 167 units.

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Definitions:

Axon Terminal

Bulbous end of the axon where signals move from the axon of one neuron to the dendrites or cell body of another.

Dendrites

The branched extensions of a neuron that receive signals from other neurons or sensory receptors and convey them toward the cell body.

Synapse

The junction between two neurons or between a neuron and a muscle cell, where electrical or chemical signals are transmitted from one cell to another.

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another neuron, muscle cell, or gland cell.