Question

Fixed costs for a product are $30,000. The product itself sells for $3.00 and it costs $1.50 to make each product. How can the plant decrease the break-even point by 5000 units?
A) Increase P, the price of the item, by $0.50.
B) Increase TFC, the fixed costs for item, by $5000.
C) Decrease P, the price of the item, by $0.50.
D) Decrease TFC, the fixed costs for item, by $5000.

Answer

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