Figure 4-4

question 78

Multiple Choice

Figure 4-4. Yerke Company makes jungle gyms and tree houses for children.For jungle gyms,the price is $120 and variable expenses are $90 per unit.For tree houses,the price is $200 and variable expenses are $100.Total fixed expenses are $253,750.Last year,Yerke sold 12,000 gyms and 4,000 tree houses.
Refer to Figure 4-4.Now suppose that Yerke expects tree house demand to increase from 4,000 to 8,000 units.What is the number of tree houses sold at break-even?

• A)1,750
• B)668
• C)2,625
• D)1,002
• E)875

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Definitions:

Centigrade

A temperature scale also known as Celsius, where 0 degrees is the freezing point of water and 100 degrees is the boiling point at standard atmospheric pressure.

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A temperature scale where water freezes at 32 degrees and boils at 212 degrees under standard conditions.

Fifth Vital Sign

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Pain Scale

A tool used by healthcare providers to help assess a patient's pain intensity or changes in pain.