Multiple Choice
Taizhong Semiconductor Company mass produces several common computer chips. Type A sells for $1.20 per unit. Variable cost is $0.95 per unit and the fixed costs are $32,000 per month. Taizhong currently sells 140,000 units per month. Under intense pressure to boost profits, the production manager has a plan which will reduce fixed costs by 10%. How will this affect the breakeven point in terms of units per month?
A) It will go down by 12,800 units.
B) It will go down by 8,000 units.
C) It will go up by 1,200 units.
D) It will stay the same.
Correct Answer:
Verified
Correct Answer:
Verified
Q54: A company's contribution margin ratio is 8%.
Q55: Total variable costs change in response to
Q56: Which of the following statements is CORRECT
Q57: Juan Martinez played classical guitar professionally
Q58: Juan Martinez played classical guitar professionally
Q60: Fixed costs divided by the contribution margin
Q61: Bell Products manufactures packs of pesticides
Q62: On a CVP graph, the intersection of
Q63: Jurassic Manufacturers produces flooring material. Fixed costs
Q64: A small business produces a single