Ned Buys Old Lawn Mowers, Reconditions Them, and Sells Them

question 24

Multiple Choice

Ned buys old lawn mowers, reconditions them, and sells them for $225. His average variable cost per lawn mower is $125. He knows he needs to sell 64 mowers to break even. Calculate Ned's fixed costs.

• A) $7,500
• B) $6,400
• C) $1,800
• D) $5,540

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Definitions:

Kingpin

A critical component in the steering mechanism of a vehicle, particularly in the connection between the axle and wheel.

Ackerman Arms

Component parts of a vehicle's steering mechanism that help to achieve the correct angle for the tires during turning.

Single Axle Truck

A type of truck or vehicle with only one rear axle, often used for smaller or medium-sized loads.

Tie-rod End Ball Socket

A pivotal connection point in a vehicle's steering system enabling the wheels to turn.