A Product Sells for $30 Per Unit and Has Variable

question 74

Multiple Choice

A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit and fixed costs increase to $900,000, and the selling price does not change, break-even point in units would:

• A) Increase by 20,000.
• B) Equal 6,000.
• C) Increase by 6,000.
• D) Decrease by 20,000.
• E) Not change.

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Definitions:

Ribs

Long, curved bones that form the rib cage, providing protection to the thoracic organs and support to the upper body.

Sternum

The sternum, or breastbone, is a long flat bone located at the center of the chest, connecting to the ribs and supporting the thoracic region.

Epiphysis

The end part of a long bone, which is initially growing separately from the shaft during development.

Diaphysis

The diaphysis is the main or midsection (shaft) of a long bone, distinguished from the bone's ends or epiphyses.