Franklin Producers Sells Its Core Product for $5 Per Unit

question 273

Multiple Choice

Franklin Producers sells its core product for $5 per unit and has variable costs of $3 per unit. Total fixed costs are $22,000. Suppose variable costs increase by 30% due to an increase in the cost of direct materials. What will be the effect on the breakeven point in units?

• A)Decrease from 2750 units to 2472 units
• B)Decrease from 11,000 units to 3143 units
• C)Increase from 11,000 units to 20,000 units
• D)Decrease from 7333.33333 units to 5642 units

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Definitions:

Operational Definition

A clear, precise definition of a variable in terms of the specific procedures or measures used to determine its presence and quantity.

Student Participation

The involvement of students in the learning process, often characterized by engagement in classroom discussions, activities, and decision-making.

Independent Variable

The experimental element that is manipulated to observe its effect on the dependent variable within scientific research.

Dependent Variable

In research, it's the variable that is being tested and measured, expected to change as a result of manipulations to the independent variable.