Vicade Has 1,000 Commercial Video Game Machines in Inventory Produced

question 129

Multiple Choice

Vicade has 1,000 commercial video game machines in inventory produced at a cost of $400 each (60% variable and 40% fixed) . The machines were to have been sold for $1,000 each. However, the machines currently contain a minor malfunction reducing their selling price to $150 each. The company could correct the malfunction at a variable cost of $250 each and then sell the machines for $550 each.
For purposes of determining whether the machines should be reworked, what is the opportunity cost per unit?

• A) $150
• B) $200
• C) $240
• D) $400

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Definitions:

Human Brain

The central organ of the human nervous system, responsible for thought, memory, emotion, touch, motor skills, vision, respiration, temperature control, and other functions.

Nerve Cells

Also known as neurons, specialized cells in the nervous system that transmit information through electrical and chemical signals.

Human Nervous System

The part of the body that coordinates its voluntary and involuntary actions and transmits signals to and from different parts of its body.

Neurons

Electrically excitable cells in the nervous system that process and transmit information through electrical and chemical signals.