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

Quizplus · Accepted Answer

Purchasing new equipment would likely increase fixed costs, which would move Point B higher on the y-axis in a CVP graph, as Point B represents the break-even point where total revenue equals total costs.

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