Assume a Fixed Cost for a Process of $15,000

question 49

Multiple Choice

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even?

• A) 500 units
• B) 667 units
• C) 790 units
• D) 900 units
• E) 1,000 units

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Definitions:

F8/h7 Symbol

A code in engineering denoting a specific type of fit between two machined parts, with precisions defined by the letter and number.

Close Running

Fit type characterized by a small but non-restrictive clearance that allows components to move together smoothly without excessive play or looseness.

Grades

Levels of quality or size in a uniform set of specifications, or levels of academic achievement in educational contexts.

Ø30 f7 Fit

A specification for a cylindrical fit where Ø30 defines the nominal diameter in millimeters and f7 specifies the tolerance class for a hole.