A Software Company That Sells Its Software Pre-Installed in Personal

question 42

Multiple Choice

A software company that sells its software pre-installed in personal computers is considering making its own computers instead of purchasing them from the Mega-Chip Company.To assemble their own computers could cost $1,000,000 in fixed costs and $100 per unit in variable costs.The company currently buys PCs for $1200,with no fixed costs.What is the break-even quantity?

• A) Greater than or equal to 1800
• B) Greater than 900 but fewer than 1800
• C) Greater than 450 but fewer than 900
• D) Less than 450

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Definitions:

Stock Returns

The earnings generated by investing in stocks, typically expressed as a percentage of the investment's original value.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Variance

A measure of dispersion that indicates how much a set of numbers spreads out around their mean value.

Intuitively Pleasing

Describes concepts or items that are satisfying or easy to understand without the need for deep analysis or study.