Stephanie Inc

question 2

Multiple Choice

Stephanie Inc. sells its product for $40. The variable costs are $18 per unit. Fixed costs are $16000. The company is considering the purchase of an automated machine that will result in a $2 reduction in unit variable costs and an increase of $5000 in fixed costs. Which of the following is true about the break-even point in units?

• A) It will remain unchanged.
• B) It will decrease.
• C) It will increase.
• D) It cannot be determined from the information provided.

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Definitions:

Hyperconsumption

Describes an excessive and unsustainable level of consumption that surpasses what is necessary for a comfortable lifestyle, often driven by consumerism and materialism.

Alienation

A condition in social relationships reflected by a decrease in the sense of personal identification with the products of one's work or disenchantment with societal norms.

Mode of Production

describes the varied ways that societies gather or produce the means of their subsistence, focusing on the combination of productive forces and relations of production.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.