Assume a Product Costs $5

question 95

Multiple Choice

Assume a product costs $5.The variable cost per unit is currently $4,and the fixed cost is $25,000.If the company can alter its production method such that the variable costs fall to $3.50 and the fixed costs rise to $30,000,what will happen to the breakeven point?

• A)It will rise and fall later.
• B)It will rise.
• C)It will remain the same.
• D)It will fall.

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