Santa Fe Production sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Santa Fe's unit sales are 200 units less than anticipated, its break-even point will: decrease by $12 per unit sold. decrease by $8 per unit sold. increase by $12 per unit sold. increase by $8 per unit sold. not change.
Santa Fe Production sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Santa Fe's unit sales are 200 units less than anticipated, its break-even point will: decrease by $12 per unit sold. decrease by $8 per unit sold. increase by $12 per unit sold. increase by $8 per unit sold. not change.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Santa Fe Production sells a single product to wholesalers. The company's budget for the upcoming year
revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed
costs of $360,000. If Santa Fe's unit sales are 200 units less than anticipated, its break-even point will:
decrease by $12 per unit sold.
decrease by $8 per unit sold.
increase by $12 per unit sold.
increase by $8 per unit sold.
not change.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba205afd-e9bb-4f33-8f83-4b7ad58932a9%2F2e1ec1e2-d8ee-46e1-b868-e1e2df23267e%2F2ny80od_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Santa Fe Production sells a single product to wholesalers. The company's budget for the upcoming year
revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed
costs of $360,000. If Santa Fe's unit sales are 200 units less than anticipated, its break-even point will:
decrease by $12 per unit sold.
decrease by $8 per unit sold.
increase by $12 per unit sold.
increase by $8 per unit sold.
not change.
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