Use the following information for the next 5 questions.
SXF 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

Use the following information for the next 5 questions.
SXF 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

Purchasing new equipment can lead to increased production efficiency or capacity, potentially increasing revenue and moving Point B higher on the y-axis, assuming Point B represents a financial metric like profit or revenue.

Use the Following Information for the Next 5 Questions