Nickelby sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows: Which of the following actions will move Point B lower on the y axis?
A) An increase in the price of materials.
B) A decrease in the number of units sold.
C) Paying sales staff a commission instead of salary.
D) An increase in variable overhead cost.

Question

Nickelby sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:  Which of the following actions will move Point B lower on the y axis?
A) An increase in the price of materials. 
B) A decrease in the number of units sold. 
C) Paying sales staff a commission instead of salary. 
D) An increase in variable overhead cost.

Quizplus · Accepted Answer

The Answer of Nickelby sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:  Which of the following actions will move Point B lower on the y axis?
A) An increase in the price of materials. 
B) A decrease in the number of units sold. 
C) Paying sales staff a commission instead of salary. 
D) An increase in variable overhead cost.

Nickelby Sells Its Single Product for $14 Per Unit, and Its