Splurge Electronics Sells Homework Machines for $80 Each

question 69

Multiple Choice

Splurge Electronics sells homework machines for $80 each.Variable costs per unit are $45 and total fixed costs are $43,750.Splurge is considering the purchase of new equipment that would increase fixed costs to $48,700, but decrease the variable costs per unit by $5.At that level, Splurge Electronics expects it can sell 1,500 units next year.What is the company's break-even point in units if it purchases the new equipment, assuming the selling price remains constant? (Round your answer to the nearest whole number.)

• A)1,250 units
• B)1,218 units
• C)650 units
• D)2,312 units

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Definitions:

Grade 14

Could refer to a specific level or quality classification in a grading system, but needs additional context to define precisely in a specific field.

Pressing or Rolling Operation

A manufacturing process where metal is shaped by pressing or rolling, often used for forming sheets, plates, or profiles.

Fit Symbol

Symbols used in engineering to specify the type of fit between two mating parts; typically defines tolerance and type such as clearance or interference.

Thread Representation

A method in technical drawings to indicate the detailed characteristics of thread on a part, including major diameter, pitch, and thread form.