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Assume the Following Cost Information for Janice Company If Fixed Costs Increased by 10% and Management Wanted to Selling

Question 128

Multiple Choice

Assume the following cost information for Janice Company:  Selling price per unit $144 Variable costs per unit $80 Total fixed costs $80,000 Tax rate 40%\begin{array}{lr}\text { Selling price per unit } & \$ 144 \\\text { Variable costs per unit } & \$ 80 \\\text { Total fixed costs } & \$ 80,000 \\\text { Tax rate } & 40 \%\end{array} If fixed costs increased by 10% and management wanted to maintain the original break-even point, then the selling price per unit would have to be increased to _____.


A) $158.40
B) $208.00
C) $150.40
D) $155.20

Correct Answer:

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