Use This Scenario to Answer the Following Questions

question 103

Multiple Choice

Use this scenario to answer the following questions.
A company must decide if it will make or buy an item it needs. The company can make the item for $10 per unit, but must invest $15,000 in tooling to achieve that capability. Alex Rogo has quoted a total price of $12 per unit to supply the quantity required (assume their fixed costs are included in the quoted price) .
-Refer to the instruction above. What is the break-even quantity in this situation?

• A) 6,500 units
• B) 7,000 units
• C) 7,250 units
• D) 7,500 units

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Definitions:

Central Nervous System

The part of the nervous system that consists of the brain and spinal cord, responsible for processing and sending out neurological information.

Peripheral Nervous System

The part of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord, connecting the central nervous system to limbs and organs.

Circulatory System

The body's system responsible for the movement of blood and lymph, facilitating the distribution of nutrients, oxygen, and waste removal.

Run

To move at a speed faster than a walk, continually propelling oneself forward with legs.