Wenthorp Enterprises decreased the selling price for its product from $10.00 to $9.00 a unit when total fixed costs decreased from $200,000 to $150,000 and variable cost per unit of $ 5 remained unchanged. How would these changes affect the break-even point?
a. The break-even point in units would be decreased.
b. The break-even point in units would remain unchanged
c. The effect cannot be determined from the information given.
d. The break-even point in units would be increased.
a
You might also like to view...
Which organization would have the ultimate responsibility of deciding if the advantages outweigh the disadvantages in the adoption of IFRS accounting standards in the U.S.?
a. FASB b. SEC c. IASB d. AICPA
Which of the following would be included as manufacturing overhead for a manufacturing company?
A) direct materials cost B) indirect materials cost C) direct labor D) advertising
Control techniques can be quite different for different countries. The differences are primarily in the ________.
A. types of tasks that employees perform in various countries B. way employees respond to the controlling measures C. strategic orientation of each technique D. measurement and corrective action steps of the control process
In business planning, what is the main course of action created by top-level managers?
A) a financial analysis B) a marketing plan C) a strategic plan D) a SWOT analysis E) a mission statement