M Studios Retails Their Own Brand of Camera That They

question 67

Multiple Choice

M Studios retails their own brand of camera that they manufacture in their plant for $500. The plant capacity is 1,000 units per month and variable costs are $225 per camera. Total fixed costs for the year are $2.16 million. Calculate the break-even point as a percentage of capacity.

• A) 34.5%
• B) 65.5%
• C) 50%
• D) 60%
• E) 62.5%

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Definitions:

Self-confident

Having a strong belief in one's own abilities, qualities, and judgment.

Resilient

The ability of an individual, community, or system to quickly recover from difficulties or adapt to change without being overwhelmed or giving up.

Risk-taking Individual

A person who is willing to undertake activities that involve risk in order to achieve goals, often in the context of business or entrepreneurship.

Tolerance for Ambiguity

An individual's capacity to remain comfortable and function effectively in situations that are uncertain, unclear, or unpredictable.