Fabricators, Inc

question 217

Multiple Choice

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $23 per unit. What is the break-even point for machine A?

• A) $90,000
• B) 11,250 units
• C) $11,250
• D) 15,000 units
• E) 3,193 units

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Definitions:

Intellectual Property

Legal rights protecting creations of the mind, such as inventions, literary and artistic works, designs, and symbols.

Foreign Company

A company that is incorporated in a country outside of the one in which it conducts a significant portion of its business activities.

Joint Venture

An agreement where multiple parties decide to combine their assets to achieve a particular goal.

Global Market Entry

Strategies and methodologies employed by businesses to enter and establish a presence in international markets.