A Firm Is Currently Buying a Part at a Cost

question 49

Multiple Choice

A firm is currently buying a part at a cost of $12 each. It is considering buying a machine that will produce the part at a variable cost of $8. Each unit of input produces the part plus a by-product, which is sold for $1. The machine will cost $40,000 and will have a useful life of 5 years. The firm requires an 8% return. What annual volume is necessary to justify making the investment? Ignore income taxes.

• A) 2,558 units
• B) 3,198 units
• C) 12,792 units
• D) 8,000 units

Understand the anatomy of the urinary bladder and the types of epithelial lining involved.

Identify the pathways urine takes from formation to excretion.

Explain the significance of the hilum in kidney structure and function.

Comprehend the relationship between the structure and function of various kidney parts.

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Definitions:

Stream Terraces

Flat, bench-like landforms parallel to a stream, formed by the erosion of a valley by the stream or by fluctuations in sea level.

Incised Downward

A process where valleys or channels are cut deeply into the landscape, often by rivers or glaciers.

Floodplains

Flat areas adjacent to rivers that are subject to flooding and are composed of sediment deposited by the river.

Entrenched Meanders

Meandering rivers or streams that have cut deeply into the landscape, creating steep banks or cliffs, often a result of a drop in base level or uplift of the land.