Arthur Company Had the Following Data for the Year Just

question 52

Multiple Choice

Arthur Company had the following data for the year just ended:
$\begin{array}{|l|r|}\hline \text { Sales } & 4,000 \text { units } \\\hline \text { Sales price } & \$ 60 \text { per unit } \\\hline \text { Variable cost } & \$ 18 \text { per unit } \\\hline \text { Fixed costs } & \$ 42,000 \\\hline\end{array}$


-If the company's fixed costs decrease by 20% next year,all other factors remaining the same,by how much will the break-even level change compared to that of the current year,rounded to the nearest whole unit?

• A) 200-unit increase.
• B) 440-unit decrease.
• C) 200-unit decrease.
• D) No change in the break-even point.

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Definitions:

Cultural Relativism

A concept that suggests the values, knowledge, and behavior of people should be understood based on their own cultural context rather than judged against the criteria of another culture.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature that affects an individual's employment, interferes with work performance, or creates a hostile work environment.

Same-Gender

Pertaining to individuals or groups that identify with the same gender, especially in contexts relating to sexual orientation, relationships, or identities.

Prestigious Occupations

Jobs or careers that are highly respected and admired in society, often associated with high social status and economic benefits.