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Splurge Electronics Sells Homework Machines for $80 Each

question 69

Multiple Choice

Splurge Electronics sells homework machines for $80 each.Variable costs per unit are $45 and total fixed costs are $43,750.Splurge is considering the purchase of new equipment that would increase fixed costs to $48,700, but decrease the variable costs per unit by $5.At that level, Splurge Electronics expects it can sell 1,500 units next year.What is the company's break-even point in units if it purchases the new equipment, assuming the selling price remains constant? (Round your answer to the nearest whole number.)

Analyze the effects of taxation and government policy on corporate investment.

Distinguish between the opportunity costs and returns of different investment options.

Evaluate the role of inflation and market uncertainty on investment behavior.

Assess the impact of capital cost, including both interest expenses and opportunity costs, on investment decisions.

Definitions:

Ortolani Sign

A clinical sign used to detect hip dislocation or dysplasia in infants, involving a specific maneuver.

Phalen Test

A diagnostic test performed by flexing the wrist gently as far as possible, then holding this position to test for numbness or tingling in the fingers, used in diagnosing carpal tunnel syndrome.

Carpal Tunnel Syndrome

A condition characterized by numbness, tingling, and weakness in the hand and arm, caused by pressure on the median nerve in the wrist.

Dorsiflex

The action of pulling the toes or foot upwards towards the shin, decreasing the angle between the dorsum of the foot and the leg.