Company X Has Variable Costs Per Unit of $20,fixed Costs

question 138

Multiple Choice

Company X has variable costs per unit of $20,fixed costs of $300,000,and a break-even point in units of 60,000 units.If the sales price per unit decreases by $2 and the variable cost per unit decreases by $2,what would happen to the break-even point?

• A) Break-even point increases.
• B) Break-even point in dollars decreases.
• C) Break-even point stays the same.
• D) Break-even point in dollars decreases and break-even point in units stays the same.

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Definitions:

Major Depressive Episode

A period characterized by a severely depressed mood or a loss of interest or pleasure in daily activities, lasting for at least two weeks.

Hypomania

A milder form of mania, characterized by elevated mood, increased activity or energy levels that are not as severe as full-blown mania.

Bipolar I Disorder

Form of bipolar disorder in which the full symptoms of mania are experienced; depressive aspects may be more infrequent or mild.

Mania

State of persistently elevated mood, feelings of grandiosity, overenthusiasm, racing thoughts, rapid speech, and impulsive actions.