Machine #1 Has Total Annual Fixed Cost of $8,500 and a Corresponding

question 67

Multiple Choice

Machine #1 has total annual fixed cost of $8,500 and a corresponding range of output of 0 to 300.Machine #2 has total annual fixed cost of $10,000 and a corresponding range of output of 301 to 600.Machine #3 has total annual fixed cost of $15,000 and a corresponding range of output of 601 to 900.Variable cost is $10 per unit and revenue is $40 per unit.What is the break-even point for each machine?

• A)200,300,450
• B)233.33,300,433.37
• C)255,320,466.67
• D)283.33,333.33,500
• E)350,550,750

Analyze the impact of changes in variable and fixed costs on the break-even point.

Understand the basic principles of cost-volume-profit (CVP) analysis.

Identify variable, fixed, and mixed costs and their implication on the break-even point and overall profitability.

Calculate the contribution margin ratio and understand its significance in CVP analysis.

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Definitions:

Androgynous

Exhibiting both masculine and feminine qualities, or a style of fashion that challenges traditional gender norms.

Gender Schema Theory

A cognitive theory that explains how individuals become gendered in society, and how sex-linked characteristics are maintained and transmitted to other members of a culture.

Information-processing Theory

A cognitive approach that uses the metaphor of a computer to describe how the mind processes information, from input through to storage and retrieval.

Information-processing System

A framework or mechanism that manipulates, stores, retrieves, and manages data or information.