Assume Hull Company Has the Following Information Available If Fixed Costs Increase by $200,000,what Is the Break-Even Point

question 133

Multiple Choice

Assume Hull Company has the following information available:
$\begin{array} { l } \text {Selling price per unit }&\$100\\ \text {Variable cost per unit }&\$45\\ \text { Fixed costs per year}&\$400,000\\ \text {Expected sales per year (units) }&20,000\\\end{array}$

If fixed costs increase by $200,000,what is the break-even point in units?

• A) 6,667
• B) 10,000
• C) 12,000
• D) 13,000

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Definitions:

Pia Mater

The delicate innermost layer of the meninges, the membranes surrounding the brain and spinal cord.

Cerebral Aqueduct

A narrow channel located in the midbrain that connects the third and fourth ventricles of the brain, allowing the flow of cerebrospinal fluid.

Third Ventricle

A narrow fluid-filled space in the brain, part of the ventricular system that lies between the two halves of the thalamus.

Fourth Ventricle

A structure in the brain that lies within the hindbrain and is responsible for circulating cerebrospinal fluid.