Use the Following Information for the Next 3 Questions

question 59

Multiple Choice

Use the following information for the next 3 questions.
Horton and Associates produces two products named BigBlast and LittleBlast. Last month 4,000 units of BigBlast and 1,000 units of the LittleBlast were produced and sold. Following are average prices and costs for last month: The production lines for both products are highly automated, so large changes in production cause very little change in total direct labor costs. Workers who are classified as direct labor monitor the production line and are permanent employees who regularly work 40 hours per week. All costs other than "corporate fixed costs" listed under each product line could be avoided if the product line were dropped.
-What is the breakeven sales volume (in units) for BigBlast? (In other words, what is the sales volume at which Horton should be financially indifferent between dropping and keeping BigBlast?)

• A) 728 units
• B) 2,545 units
• C) 1,084 units
• D) 790 units

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Definitions:

Working Drawings

Detailed drawings that provide the specifications required to manufacture or construct a project, including dimensions, materials, and processes.

Gear Teeth

The protruding elements found on the circumference of a gear wheel, which interlock with those of another gear to transmit torque and motion.

Circular Thickness

The measurement of the thickness of a circular object or element, typically observed in cross-section.

Diametral Pitch

A value describing the ratio of the number of teeth of a gear to the diameter of the pitch circle, used in the design and specification of gears.