Dixon Snowglobes Inc

question 75

Multiple Choice

Dixon Snowglobes Inc. manufactures a single product. The product sells for $10. The variable manufacturing cost per unit is $2 and the variable selling cost is $2 per unit. Dixon incurs monthly fixed costs of $100,000 for manufacturing and $140,000 for administration and selling. If Dixon raises its selling price by 10% in response to a 10% increase in variable costs, and income taxes are 40%, its new breakeven point in sales dollars (relative to that of the original data above) will be:

• A)Higher
• B)Unchanged
• C)Lower
• D)Cannot be determined

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Definitions:

Pregnancy

The condition of having a developing embryo or fetus in the body, typically in the womb, that results after fertilization of an egg by a sperm.

Midpiece

The segment of a spermatozoon between the head and the tail, containing mitochondria to power movement.

Meiosis

Nuclear division process required for sexual reproduction. Two nuclear divisions, meiosis I and II, halve the chromosome number for forthcoming gametes.

ATP

Adenosine triphosphate, a high-energy molecule that stores and transfers energy within cells, enabling various biochemical processes.