Fabricators, Inc

question 86

Multiple Choice

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. The break-even point for machine A is

• A) $90,000 dollars
• B) 90,000 units
• C) $15,000 dollars
• D) 15,000 units
• E) cannot be calculated from the information provided

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Definitions:

Ileocecal Valve

Valve formed by the ileocecal sphincter between the ileum and the cecum.

Large Intestine

Portion of the digestive tract extending from the small intestine to the anus.

Chyme

The semi-fluid mass of partly digested food that moves from the stomach to the small intestine for further digestion.

Hepatic Flexure

The bend in the colon near the liver, marking the transition from the ascending colon to the transverse colon.