Transcribed Image Text
23. Small Company, a producer of auto components, has thefollowing information:Income tax rate 20%Selling price per unit $9.00Variable cost per unit $4.00Total fixed costs $150,000.00The break-even point in units is ________.A) 15,000 units.B) 30,000 units.C) 45,000 units.D) 60,000 units.24. If the total amount of fixed costs increases, what is theeffect on the break-even point? (Assume no other changes.)A) The break-even point decreases.B) The break-even point remains the same.C) The break-even point is zero.D) The break-even point increases.25. Cost drivers are ________.A) the different functions in the value chainB) different types of functional areas in the firmC) different types of cost calculationsD) measures of activities that require the use of resources andthereby cause costs26. Assume NEIU Company has the following informationavailable:Selling price per unit $100Variable cost per unit $50Fixed costs per year $250,000Expected sales per year (units) 7,500If fixed costs increase by $50,000, what is the break-even pointin units?A) 3,000B) 4,000C) 5,000D) 6,00027. The use of high technology equipment to manufacture productsinstead of highly skilled labor usually results in ________.A) higher discretionary fixed costsB) higher discretionary variable costsC) higher operating leverageD) lower risk