Wilkes Manufacturing Sells One Product with a Variable Unit Cost

question 30

Multiple Choice

Wilkes Manufacturing sells one product with a variable unit cost of $18.The company knows that the price charged will affect demand.Fixed costs are $275,000.If sales exceed 50,000 units, the company will need to lease additional manufacturing space and equipment at an additional cost of $100,000 per year.The following chart represents the estimated demand at various price levels: $\begin{array}{rr}\text { Units Dem anded } &\text { Unit Price } \\25,000 & \$ 30 \\50,000 & \$ 28 \\75,000 & \$ 25 \\100,000 & \$ 23\end{array}$ Based on this information which of the following statements is true?

• A)Selling the units at $23 will generate the largest profit.
• B)Selling the units at either $23 or $28 will generate a profit of $225,000.
• C)Selling the units at either $25 or $28 will generate a profit of $225,000.
• D)Selling the units at $28 will generate the largest profit.

---

Definitions:

Group Goals

Objectives set by a group collectively that they aim to achieve.

Signs of Humility

Behaviors and attitudes that indicate a person does not consider themselves superior to others, including willingness to learn, admit mistakes, and appreciate others' contributions.

Individualism

A cultural or social outlook that emphasizes personal independence and the self over group identity or collectivism.

Romance

A feeling of excitement and mystery associated with love, often emphasizing emotional and spiritual connection.