Which of the Following Statements Regarding Company a Is Incorrect

question 78

Multiple Choice

Which of the following statements regarding Company A is incorrect?

• A) If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its break-even point in units is 36,000 units.
• B) If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its variable expenses must be $20 per unit.
• C) If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, once it has covered its fixed costs, net income will increase by $30 for each additional unit sold.
• D) Both if Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its break-even point in units is 36,000 units and if Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution margin of $30 per unit, its variable expenses must be $20 per unit are incorrect.

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Definitions:

Antiaromatic

A compound that is cyclic, conjugated, but does not follow Huckel's rule, often being less stable due to its electron configuration.

Nonaromatic

Organic compounds that do not fulfill the criteria for aromaticity, lacking the special stability observed in aromatic systems.

Fused-ring Heterocycle

A cyclic compound where two or more rings share two or more common atoms, with at least one of the rings containing atoms other than carbon.

Purine

A heterocyclic aromatic organic compound, forming the basis of two of the four nucleotides that constitute DNA and RNA (adenine and guanine).