A Manufacturing Company Is Considering Producing a New Product

question 15

Multiple Choice

A manufacturing company is considering producing a new product. The variable cost of the new product is $60 per unit, and the total fixed costs are $75,000 for a month. The company could produce 1,500 units per month, and sell the product for $125 each. What would be the net income at 90% capacity?

• A) $10,000
• B) $15,000
• C) $12,750
• D) $12,225
• E) $16,000

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Definitions:

Emergency Application

The use of measures or processes in urgent situations requiring immediate medical or health intervention.

IV Infusion Pump

A medical device used to deliver fluids, such as nutrients and medications, directly into a patient’s bloodstream at controlled rates.

Electrical Cord

A length of insulated wire used to connect an electrical device to a power source.

Healthcare Team

A group of diverse health professionals who work collaboratively to provide comprehensive care to individuals, focusing on diagnosis, treatment, and health maintenance.