Bloom Company Has Variable Cost Per Unit of $20 and a Sales

question 31

Multiple Choice

Bloom Company has variable cost per unit of $20 and a sales price of $35 per unit.Its total fixed costs are $240,000.Which of the following is a correct statement?

• A) Company D's break-even point is 12,000 units.
• B) If budgeted sales are 25,000 units, D's margin of safety is 10,000 units.
• C) If Company D's variable cost per unit increases and nothing else changes, the margin of safety will decrease.
• D) If Company D's variable cost per unit decreases and nothing else changes, the break-even point will stay the same.

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Definitions:

Compensation Negotiation

The process of bargaining the terms of employment, especially salary and benefits, between an employee and an employer.

Assertive

Characterized by confidence and directness in claiming one's rights or putting forward one's views without being aggressive.

Research

The systematic investigation and study of materials and sources to establish facts and reach new conclusions.