The Solar Calculator Company Proposes to Invest $5 Million in a New

question 24

Multiple Choice

The Solar Calculator Company proposes to invest $5 million in a new calculator-making plant. Fixed costs are $2 million per year. A solar calculator costs $5 per unit to manufacture and sells for $20 per unit. If the plant lasts for three years and the cost of capital is 12 percent, what is the break-even level of annual sales? (Assume that revenues and costs occur at the end of each year. Assume no taxes.) Round to the nearest 1,000 units.

• A)133,000 units
• B)272,000 units
• C)228,000 units
• D)244,000 units

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Definitions:

Facework

Strategies used to manage one's own image or face in social interactions, and to uphold or repair the face of others.

Face

is a sociolinguistic concept that refers to an individual's projected image or social value within interpersonal communications.

Self-worth

The subjective evaluation of one's own value as a person, often influenced by self-perception and external validation.

Social Comparison

The process of evaluating oneself by comparing with others.