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:

Three-Phase Voltages

Voltages derived from a three-phase power system, characterized by three alternating currents that differ in phase by one-third of a cycle.

Out Of Phase

The condition in which two components do not reach their positive or negative peaks at the same time.

Three-Phase Connection

A type of electrical connection typically used for power transmission that involves three alternating currents of the same frequency, each 120 degrees out of phase with the others.

Line Voltage

The voltage measured between any two lines in a multi-phase electrical power system, often higher than the voltage from any one line to neutral.