Gitli Company Sells Its Product for $60 and Has Variable

question 112

Multiple Choice

Gitli Company sells its product for $60 and has variable cost of $35 per unit.The total fixed costs are $26,000.What will be the effect on the breakeven point in units if variable cost increases by $5 due to an increase in the cost of direct materials? (Round your answer up to the nearest whole unit.)

• A) It will increase by 260 units.
• B) It will decrease by 260 units.
• C) It will decrease by 176 units.
• D) It will increase by 176 units.

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Definitions:

Strategic Focus

The prioritization and alignment of resources and actions with long-term goals to achieve competitive advantage and meet organizational objectives.

Financial Savings

Refers to the amount of money that an individual or organization retains after all expenses have been subtracted from their income.

Negotiating the Contract

This process involves the discussion and settlement of the terms and conditions of a contract between two or more parties before finalizing it.

Managing Outsourcing

The practice of overseeing and directing work or services to external vendors to achieve desired outcomes efficiently.