A Company Has Fixed Costs of $60,000 Per Month

question 96

Multiple Choice

A company has fixed costs of $60,000 per month. If sales double from 6,000 to 12,000 units during the month, fixed costs in total will

• A)double.
• B)remain the same.
• C)be cut in half.
• D)be none of the above.

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Definitions:

Bystander Effect

A phenomenon in social psychology where people are less inclined to assist a victim if there are others around.

Pluralistic Compliance

The phenomenon where individuals conform to the perceived behavior or beliefs of a group, even if they might personally disagree, due to the assumption that the group's consensus represents the correct course of action.

Fear

An emotional response to a perceived threat, characterized by increased alertness, anxiety, and a survival-oriented behavior.

Message

Any verbal, written, or signaled communication sent from one individual or group to another.