By Making the PDP 11 Minicomputer an Integral Part of the Therac-25

question 20

Multiple Choice

By making the PDP 11 minicomputer an integral part of the Therac-25, AECL was able to

• A) reduce costs by replacing hardware safety features with software safety features.
• B) increase the stock price of its subsidiary Digital Equipment Corporation.
• C) shrink the size of the machine considerably.
• D) eliminate the need for lead shielding.
• E) All of the above

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, providing stability in a budget.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and profit generation.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.