Regency,Inc

question 152

Multiple Choice

Regency,Inc.makes disposable cap and gown sets for graduations.Each cap and gown set sells for $15.The average variable cost for manufacturing ten cap and gown sets is $100.Total fixed costs for the year equal $65,000.Calculate the break-even point in units.

• A) 650
• B) 765
• C) 1,300
• D) 4,334
• E) 13,000

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Definitions:

Positive Externality

A benefit that affects someone who did not choose to incur that benefit, often related to economic activities.

Nominal

pertaining to names or terms, or representing values by names in certain contexts, such as nominal data in statistics which categorizes without a natural order.

Augmented

Enhanced or improved by adding features, components, or elements not originally present.

Complement

Something that completes or goes well with something else, often enhancing its qualities or effectiveness.