Which of the following would explain the change in the break-even point between the months of July and August?

multiple choice

A decrease in the variable cost per unit of each item sold in August

A decrease in the expected sales price per unit in the month of August

An increase in the amount of fixed cost in the month of August

None of the above explain the change in the break-even point between the two months. Incorrect

Assume Pops planes only incurred one fixed cost during the year which was the purchase price of an airplane. No other fixed costs were incurred during the year. Now examine the break-even analysis for the months of August and November. Based on this assumption that fixed costs remained constant, can you conclude that the company has no variable cost?

multiple choice

Yes, the company did not have any variable cost. Incorrect

No, the company must have had variable cost.

This cannot be determined from the visualization.

The visualization in this exercise represents a break-even analysis for Pops Planes., a small passenger airline, catering to tourists travelling between Hawaiian Islands. The break-even analysis shows the number of passengers (units) in the left column and sales dollars in the right column for each month of the fiscal year. The blue portion of the bar charts represents the number of units (left) or dollars (right) required each month to break even while the grey portion represents the actual units or dollars sold each month. The percentage values in the center represent the extent to which actual sales exceeded break-even sales. Finally, the center column compares actual sales to break-even sales based on company management expectations as follows: - Not meeting or exceeding break-even sales of less than 50% is below expectations (red dot). - Exceeding break-even sales from 50% to 100% is meeting expectations (yellow dot). - Exceeding break-even sales greater than 100% is exceeding expectations (green dot). Use the information in the dashboard to answer the following questions