Evans Tiles Company Has Estimated the Following Amounts for Its

question 52

Multiple Choice

Evans Tiles Company has estimated the following amounts for its next fiscal year: What will happen to the breakeven point (in units) if Evans can reduce fixed expenses by $22,500?

• A)The breakeven point will decrease by 1,500 units.
• B)The breakeven point will decrease by 562 units.
• C)The breakeven point will decrease by 900 units.
• D)The breakeven point will increase by 562 units.

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Definitions:

Needs Theory

A conceptual framework that identifies and categorizes the fundamental motivations driving human behavior.

Drive-reduction Theory

A theory of motivation proposing that the presence of a need creates a drive to eliminate or satisfy that need, thereby restoring balance or homeostasis.

Homeostasis

The process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.

Primary Drives

Basic, innate urges that motivate behavior necessary for survival, such as hunger, thirst, sleep, and avoidance of pain.