SXF Sells Its Single Product for $14 Per Unit, and Its

question 74

Multiple Choice

SXF sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows: Which of the following actions will move Point A to the right on the x axis?

• A) An increase in the number of units sold
• B) A decrease in the number of units sold
• C) An increase in the product's selling price
• D) An increase in the variable cost per unit

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Definitions:

Oil Deposits

Natural accumulations of hydrocarbons, typically underground, that can be extracted for use as fuel and in various industrial applications.

Incentive Function

The way in which economic rewards or penalties influence the actions of individuals and firms.

Competitive Markets

Markets where multiple firms are in rivalry to attract consumers, characterized by free entry and exit, leading to efficient outcomes.

Price Increases

An upward adjustment in the cost of goods or services, typically reflecting higher production costs or increased demand.