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:

Personality

The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.

Class Clown

A common role in academic settings, referring to a student known for their humorous antics and tendencies to entertain peers, often at the expense of disruption.

Socialized

The process by which individuals learn and internalize the values, beliefs, and norms of their culture or society, influencing their behaviors and perspectives.

Buffoons

Individuals who behave in a ridiculous but amusing way; often used to refer to clowns or jesters historically.