Kumar Produces Large Decorative Tiles Used in Home Decor

question 14

Multiple Choice

Kumar produces large decorative tiles used in home decor.The tiles sell for $720 and the fixed monthly operating costs are as follows:

Kumar's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales,$0.60 went to cover his fixed costs,and that anything past that point was pure profit.
Kumar's is planning to increase the selling price to $840.What impact will the increase in selling price have on the breakeven point in units?

• A)It will stay the same.
• B)It will go down from 12 to 10 units.
• C)It will go up from 10 to 13 units.
• D)It will go down from 10 to 8 units.

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Definitions:

Community Development

A process where community members come together to take collective action and generate solutions to common problems.

Theory Y

A management concept that assumes employees are self-motivated, seek responsibility, and are creative problem solvers.

Incapable of Growth

A state or condition where an organism, individual, or entity cannot physically or developmentally expand or progress.

Family Preservation

Efforts and services aimed at keeping families together, preventing the unnecessary placement of children in foster care, group homes, or other institutional settings.