Multiple Choice
Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China and sells them through its website. Parker's only overhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for website hosting. Currently, Parker imports the lights for $.99 each (including inbound shipping) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. If Parker's shipping charges increased to $.75 a strand, what would happen?
A) Breakeven volume would increase
B) Variable cost would decrease
C) Profit would increase
D) Breakeven volume would decrease
Correct Answer:
Verified
Correct Answer:
Verified
Q36: Breakeven sales volume is calculated as:<br>A) Breakeven
Q37: Which of the following is NOT one
Q38: Firms with a volume or sales objective
Q39: A firm can reduce its breakeven volume
Q40: Vandelay Industries manufactures a range of latex
Q42: Maddie noticed that many students on campus
Q43: Businesses that use cost-based pricing often have
Q44: Vandelay Industries manufactures a range of latex
Q45: A company incurs fixed costs of $35,000
Q46: The breakeven model assumes per-unit variable costs