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Lightfoot Company sells its product for $60 and has variable cost of $35 per unit. The total fixed ...

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Lightfoot Company sells its product for $60 and has variable cost of $35 per unit. The total fixed ...

Lightfoot Company sells its product for $60 and has variable cost of $35 per unit. The total fixed costs are $26,000. What will be the effect on the breakeven point in units if variable cost increases by $5 due to an increase in the cost of direct materials? (Round your answer up to the nearest whole unit.)
A) It will decrease by 176 units.
B) It will increase by 176 units.
C) It will increase by 260 units.
D) It will decrease by 260 units.

Textbook

Horngren's Financial & Managerial Accounting, The Financial Chapters

Edition: 5^th

Authors: Miller-Nobles, Mattison, Matsumura

Read 283 times

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7 years ago

This was certainly a tough question, loving the expertise

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Faris E.

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3 years ago

thanks

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