Fred's Fabrication, Inc

question 15

Multiple Choice

Fred's Fabrication, Inc. wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $70,000. The variable cost for A is $9.00 per unit and for B, $14.00. The revenue generated by the units processed on these machines is $20 per unit. The crossover between machine A and machine B is

• A) 4,000 units, with A more profitable at low volumes.
• B) 4,000 dollars, with A more profitable at low volumes.
• C) 4,000 units, with B more profitable at low volumes.
• D) 4,000 dollars, with B more profitable at low volumes.
• E) cannot be calculated from the information provided.

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Definitions:

Bizarre Behavior

Actions or reactions that are highly unusual or extremely unconventional, often defying social norms.

Partial Dopamine Agonists

Medications that stimulate dopamine receptors in the brain to a lesser degree than full agonists, often used in treating schizophrenia.

Antipsychotic Medications

Drugs used to treat psychiatric conditions, particularly schizophrenia and bipolar disorder, by managing symptoms such as delusions and hallucinations.

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another in the nervous system.