Harry Sprague Makes Custom Bowling Balls

question 44

Multiple Choice

Harry Sprague makes custom bowling balls.His fixed cost is $255,000, variable cost is $45.50, and selling price is $55.50.To what value must he reduce his variable cost if he wants a break-even point of 10,000 units?

• A)$39
• B)$37
• C)$35
• D)$30

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Definitions:

Parabronchi

The small, air-filled tubes in the lungs of birds through which air flows for highly efficient gas exchange.

Countercurrent Exchange

A mechanism occurring in nature and designed systems wherein two flowing bodies of water, air, or other substances move in opposite directions of each other to maximize the transfer rate of heat or matter.

Concurrent Exchange

A process in which two substances, such as blood and air in the lungs, flow in opposite directions to maximize the transfer of gases or other molecules.

Tracheal Tubes

A network of air tubes in insects that branch throughout the body for gas exchange.