Jarvis Foods produces a gourmet condiment which sells for $10.00 per unit. Variable costs are $7.50 per unit, and fixed costs are $18,000 per month. Jarvis is currently selling 8,000 units per month. If Jarvis is forced to reduce the selling price down to $9.00 per unit, and volume remains constant, how will that affect its breakeven point in dollars?
A) Breakeven will go down by $36,000 of sales revenues.
B) Breakeven will go down by $4,800 of sales revenues.
C) Breakeven will go up by $36.000 of sales revenues.
D) Breakeven will go up by $8,000 of sales revenues.
Correct Answer:
Verified
Q96: If a company reduces its fixed costs,
Q97: Bell Products manufactures packs of pesticides
Q99: Chambers Company sells glass vases at a
Q100: Chambers Company sells glass vases at a
Q102: Which of the following will lower the
Q103: Moylan Company has provided the following
Q104: Arquebus Company is owned and operated
Q105: Jarvis Foods produces a gourmet condiment which
Q106: Arquebus Company is owned and operated
Q122: If variable costs go down,and all other
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents