Maple IncManufactures a Product That Costs $45 Per Unit Plus $50,000

question 118

Multiple Choice

Maple Inc.manufactures a product that costs $45 per unit plus $50,000 in fixed costs each month.Maple currently sells 5,000 of these units per month for $60 each.If Maple leased a machine for $30,000 a month,it could add features to the product that would allow it to increase the selling price.It would cost an additional $10 per unit to add these features.How much would Maple have to charge for the product with additional features to make it worthwhile to lease the machine?

• A)$55
• B)$60
• C)$71
• D)$76

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Definitions:

Revising Theories

The process of critically evaluating and updating theoretical frameworks based on new evidence or insights, to refine and improve their explanatory power.

Economic Science

The study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

Trade-Offs

The sacrifice of one thing for another, recognizing that choosing some benefits necessitates giving up others.

Production Decisions

The determination of what, how, and for whom goods and services will be produced by a firm.