BETA 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 higher on the y axis?

A) An increase in the price of materials
B) A decrease in the number of units sold
C) Purchase of new equipment
D) An increase in variable overhead cost

Question

BETA 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 higher on the y axis?

A) An increase in the price of materials 
B) A decrease in the number of units sold 
C) Purchase of new equipment 
D) An increase in variable overhead cost

Quizplus · Accepted Answer

The Answer of BETA 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 higher on the y axis?

A) An increase in the price of materials 
B) A decrease in the number of units sold 
C) Purchase of new equipment 
D) An increase in variable overhead cost

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