Variable Costs Depend on the Number of Units Produced

question 92

Multiple Choice

Variable costs depend on the number of units produced. Fixed costs are the same regardless of how many units are produced. A company has fixed monthly costs of $11,000 and variable monthly costs of $7.00 per unit. The company has $75,000 available each month to cover costs. Find the greatest number of units the company can produce each month.

• A)9142 units per month
• B)9146 units per month
• C)9149 units per month
• D)9152 units per month
• E)9135 units per month

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Definitions:

Machinery

Mechanical devices or assemblies, which perform specific functions in industrial, agricultural, or domestic settings.

Motor

A machine, especially one powered by electricity or internal combustion, that provides motive power for a vehicle or for some other device with moving parts.

Wound-Rotor Induction Motor

A type of induction motor where the rotor has windings connected to slip rings, enabling variable resistance to be inserted in the rotor circuit for speed control.

Starting Torque

The initial torque produced by a motor or engine upon starting, critical for overcoming inertia and commencing rotation.