Fixed Costs for a Product Are $60,000

question 12

Multiple Choice

Fixed costs for a product are $60,000.The product itself sells for $4.00 and it costs $1.00 to make each product.How will the break-even point for the product change if the variable cost per unit goes up to $1.50?

• A)The break-even point will increase by 4000.
• B)The break-even point will increase by 24,000.
• C)The break-even point will decrease by 4000.
• D)The break-even point will increase by 20,000.

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Definitions:

Short-Term Drowsiness

A temporary state of feeling sleepy or lethargic, often lasting for a brief period.

Narcotic

Substances that bring about numbness or a stuporous condition, often used for pain relief but can be highly addictive.

Dissociation

A psychological state in which a person disconnects from their thoughts, feelings, memories, or sense of identity.

Mental Processes

Internal, covert activities of our minds such as thinking, feeling, and reasoning.