Ingrum Corporation Produces and Sells Two Products

question 126

Multiple Choice

Ingrum Corporation produces and sells two products. In the most recent month, Product R38T had sales of $29,500 and variable expenses of $8,140. Product X08S had sales of $50,500 and variable expenses of $39,860. The fixed expenses of the entire company were $35,080.The break-even point for the entire company is closest to:

• A) $80,000
• B) $87,700
• C) $35,080
• D) $24,672

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Definitions:

Expectancy Theory

A motivational theory that suggests an individual's motivation is based on their perceived likelihood that their effort will lead to desired performance and the value of the resulting rewards.

P-to-O Expectancy

The belief that putting effort into a task will lead to achieving a desirable outcome.

Relative Status

Pertains to the position or ranking of an individual or group in relation to others within a social or organizational context, influencing dynamics and interactions.

Four-drive Theory

A motivational theory suggesting humans are driven by four basic needs: acquire, bond, comprehend, and defend, that influence behavior and decision making.