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:

Individual Interaction

The exchange or communication between people, which can influence social, psychological, and organizational dynamics.

Job Rotation

A workforce management strategy that involves moving employees between different tasks to promote versatility and reduce monotony.

Job Enlargement

An approach to increase the number and variety of tasks that an employee performs to enhance job satisfaction.

Specialized Jobs

Positions that require a specific set of skills or knowledge in a particular area or field.