What Would Happen to a Blanket Rate If Production Volumes

question 8

Multiple Choice

What would happen to a blanket rate if production volumes were reduced?

• A) The fixed cost per unit of the product would decrease.
• B) The unit cost of a product would increase.
• C) The unit cost of a product would decrease.
• D) The direct cost per unit of a product would increase.

---

Definitions:

Modulator Valve

A device in hydraulic systems that regulates pressure or fluid flow, often used in automatic transmissions and braking systems.

Reverse Ratios

The gear ratios used when a vehicle is operating in reverse, determining the speed and torque available.

Allison TC10

A specific model of automatic transmission by Allison designed for medium to heavy-duty trucks, offering fuel efficiency and smooth shifting.

Forward Ratios

Refers to the gear ratios in a vehicle's transmission that are used when moving forward, influencing acceleration, performance, and fuel economy.