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Reference: 08-13
Hooper Corporation Produces and Sells Two Models of Vacuum

question 26

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Reference: 08-13
Hooper Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. The company records show the following monthly data relating to these two products:  Standard  Deluxe  Selling price per unit $150$165 Variable production costs 120126 Variable selling expense per unit 1613 Expected monthly sales in units 6001,200 Total monthly fixed cost $15,000\begin{array} { | l | l | l | l | } \hline & \text { Standard } & & \text { Deluxe } \\\hline \text { Selling price per unit } & \$ 150 & & \$ 165 \\\hline \text { Variable production costs } & 120 & & 126 \\\hline \text { Variable selling expense per unit } & 16& & 13 \\\hline \text { Expected monthly sales in units } & 600 && 1,200 \\\hline \text { Total monthly fixed cost } & & \$ 15,000 & \\\hline\end{array}
-The break-even in sales dollars for the expected sales mix is closest to:

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Definitions:

Production Possibilities Frontier

A graph illustrating the maximum possible output combinations for two products that a country can produce given its technological capabilities and quantity of inputs.

Unemployment

The situation when individuals who are capable of working and are actively seeking employment are unable to find a job.

Production Possibilities Curve

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology.

Unemployment Rate

The fraction of the labor market actively in pursuit of work but is currently jobless.

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