Solved

Mosaic Tile Company Has Estimated the Following Amounts for Its

Question 181

Multiple Choice

Mosaic Tile Company has estimated the following amounts for its next fiscal year:  Total fixed costs $832,000 Sales price per unit 44 Variable costs per unit 20\begin{array} { | l | r | } \hline \text { Total fixed costs } & \$ 832,000 \\\hline \text { Sales price per unit } & 44 \\\hline \text { Variable costs per unit } & 20 \\\hline\end{array} What will happen to the breakeven point (in units) if Mosaic can reduce fixed costs by $22,000? (Round your answer up to the nearest whole unit.)


A) The breakeven point will decrease by 917 units.
B) The breakeven point will decrease by 1100 units.
C) The breakeven point will increase by 1100 units.
D) The breakeven point will increase by 500 units.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions