Cool Shades Manufactures Biotech Sunglasses

question 96

Multiple Choice

Cool Shades manufactures biotech sunglasses. The variable materials cost is $1.38 per unit, and the variable labor cost is $.92 per unit. Suppose the firm incurs fixed costs of $348,000 during a year in which total production is 136,000 units and the selling price is $19.50 per unit. What is the cash break-even point?

• A) 16,453 units
• B) 22,435 units
• C) 20,233 units
• D) 18,907 units
• E) 14,768 units

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Definitions:

Stereotypes

Overgeneralized beliefs about a particular category of people, assuming that everyone in that category shares the same characteristics.

Realistic Conflict Theory

A social psychology theory that proposes that intergroup conflict arises from competition for limited resources.

Prisoner's Dilemma

A situation in game theory where two individuals acting in their own self-interest do not result in the optimal outcome, illustrating the conflict between individual and collective rationality.

Social Dilemmas

Situations in which short term personal gain is at odds with the long-term good of the group.