Matrix, Inc

question 143

Multiple Choice

Matrix, Inc. currently has sales of $39,600, variable costs of $28,730, and fixed costs of $8,280. If the company installs a new piece of equipment, the variable costs are expected to increase to $34,970 and the number of units produced will increase from 2,800 to 4,100. What is the minimum price the company can accept for each of the additional units if they want to maintain their current level of net income?

• A) $1.52
• B) $4.80
• C) $5.73
• D) $6.82
• E) $10.55

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Definitions:

Theories of Consumption

Refers to various frameworks for understanding how and why individuals or societies engage in buying, using, and disposing of goods and services.

Marxist Tradition

A body of thought derived from the works of Karl Marx, focusing on the role of class struggle in societal change and development.

Institute of Social Research

A research organization affiliated with a university, focusing on the analysis and understanding of social structures and processes.

Frankfurt School

A group of mid-20th century thinkers who combined Marxist critical theory with psychoanalysis to analyze the cultural and societal changes in capitalist societies.