The Oliver Company Plans to Market a New Product

question 44

Multiple Choice

The Oliver company plans to market a new product. Based on its market studies, Oliver estimates that it can sell up to 5,000 units in 2005. The selling price will be $2 per unit. Variable costs are estimated to be 20% of total revenue. Fixed costs are estimated to be $5,600 for 2005. How many units should the company sell to break even ?

• A)5,000 units
• B) 5,600 units
• C) 2,333 units
• D) 3,500 units
• E) 2,800 units

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Definitions:

Ventricular Depolarization

A stage in the cardiac cycle where ventricles contract, triggered by electrical impulses that precede the pumping of blood.

ECG

Electrocardiogram, a medical test that measures the electrical activity of the heart to detect heart problems.

Plethysmogram

A graph or recording that measures changes in volume within an organ or whole body (often the blood volume changes in the limbs).

Pressure Wave

A type of wave mechanism that occurs when a fluid or gas changes velocity, often seen in the circulatory system as a pulse.