If Variable Costs Per Unit Increased Because of an Increase

question 77

Multiple Choice

If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would:

• A) decrease
• B) increase
• C) remain the same
• D) increase or decrease, depending upon the percentage increase in wage rates

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Definitions:

Shift of Assets

Shift of assets involves reallocating or transferring assets from one investment to another or from one asset class to another.

Accounts Receivable

Money owed to a business by its customers for goods or services sold on credit.

Fees Earned

Income or revenue generated by providing services, distinct from selling goods.

Supplies

Items used in the operation of a business but not directly related to the production of goods or services, such as office supplies.