Gail Co Sells a Single Product for $40 Per Unit

question 24

Multiple Choice

Gail Co sells a single product for $40 per unit.Fixed costs are $160 000 and variable costs equal 75% of sales.If fixed costs increase by $10 000,Gail will have to increase sales by how much just to earn profits equal to those earned before costs increased?

• A)$100 000
• B)$40 000
• C)$80 000
• D)$20 000

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Definitions:

Genetically Determined Traits

Genetically determined traits are characteristics that are passed down from parents to offspring through genes, including physical and some behavioral traits.

Behavior

Behavior encompasses the actions and reactions of an organism, often in response to its environment or stimuli.

Ego

Refers to the part of the psyche that mediates between the conscious, the unconscious, and the external world, according to Freudian psychology.

Conscience

An internal regulatory process that helps an individual discern right from wrong and act according to moral principles.