The Laser Co If the Firm Sells 5,000 Units Per Period, What Price

question 104

Multiple Choice

The Laser Co. produces a single product. Its cost structure is: $\begin{array}{lll}&&\text { Variable Cost }\\&\text { Fixed Cost }&\text { Per Unit }\\\text { Manufacturing costs } & \$ 35,000 & \$ 15 \\\text { Non-manufacturing costs } & 60,000 & 10\end{array}$ If the firm sells 5,000 units per period, what price should be charged to earn $35,000?

• A) $44
• B) $45
• C) $50
• D) $51

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Definitions:

Effectiveness

The degree to which objectives are achieved and targeted problems are solved, in contrast to efficiency, which focuses on the resources required to achieve these objectives.

BPR

A strategy aimed at enhancing the efficiency and effectiveness of an organization's workflows, known as Business Process Reengineering.

BPI

Business Process Improvement, a strategic approach to identify, analyze, and improve existing business processes to meet new goals or standards of quality.

Cross-Functional Processes

No single functional area is responsible for a process’s execution.