The lower the service level, the greater the probability of a stockout

In the summer, colleges advertise very little. This is a decision about

a. media placement b. media timing c. media availability d. media category e. media evaluation

Fixed costs for a product are $60,000. The product itself sells for $4.00 and it costs $1.00 to make each product. How will the break-even point for the product change if the variable cost per unit goes up to $1.50?

A) The break-even point will increase by 4000. B) The break-even point will increase by 24,000. C) The break-even point will decrease by 4000. D) The break-even point will increase by 20,000.