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:

Amino Acid

Organic molecules that serve as the building blocks of proteins, containing both amino and carboxyl functional groups.

Mechanism

A sequence of steps or a process by which a chemical reaction or physical event occurs.

Reaction

A reaction process where starting materials, referred to as reactants, evolve into one or more altered forms, named products.

Wittig Reaction

A chemical reaction used to convert aldehydes or ketones into alkenes through the use of a phosphonium ylide.