Mosaic Tile Company Has Estimated the Following Amounts for Its

question 116

Multiple Choice

Mosaic Tile Company has estimated the following amounts for its next fiscal year: $$\begin{array} { | l | r | } \hline \text { Total fixed costs } & \$ 832,000 \\\hline \text { Sales price per unit } & 44 \\\hline \text { Variable costs per unit } & 20 \\\hline\end{array}$$ What will happen to the breakeven point (in units) if Mosaic can reduce fixed costs by $22,000? (Round your answer up to the nearest whole unit.)

• A) The breakeven point will decrease by 917 units.
• B) The breakeven point will decrease by 1100 units.
• C) The breakeven point will increase by 1100 units.
• D) The breakeven point will increase by 500 units.

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Definitions:

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for transmitting information to and from the central nervous system.

Somatic Nervous System

Part of the peripheral nervous system associated with the voluntary control of body movements through the action of skeletal muscles.

Dissociative Amnesia

A disorder characterized by gaps in memory for personal history, sometimes due to traumatic events or extreme stress.

Traumatic Episode

An incident or period in life that causes severe psychological distress and may lead to PTSD or other stress-related disorders.