Figure 4-4

question 166

Multiple Choice

Figure 4-4.Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the price is $120 and variable expenses are $90 per unit. For tree houses, the price is $200 and variable expenses are $100. Total fixed expenses are $253,750. Last year, Yerke sold 12,000 gyms and 4,000 tree houses.
-Refer to Figure 4-4. Now suppose that Yerke expects tree house demand to increase from 4,000 to 8,000 units. What is the sales revenue at break-even?

• A) $411,250
• B) $253,700
• C) $1,076,250
• D) $665,000
• E) $140,000

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Definitions:

Sequencing

The process of arranging information, objects, or events in a specific logical order.

Pituitary Gland

A pea-sized gland situated at the base of the brain, responsible for controlling and regulating various bodily functions through the secretion of hormones.

Hypothalamus

A part of the brain situated under the thalamus, tasked with overseeing the autonomic nervous system and managing the pituitary gland to maintain various bodily functions such as temperature control, thirst, hunger, and other mechanisms that keep the body in a state of balance.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brain to the lower back, transmitting neural signals between the brain and the body.