Bakewell Inc

question 74

Multiple Choice

Bakewell Inc. wants to increase capacity by adding a new oven to their existing facility. The fixed costs for the Viking 2000 oven are $80,000, and its variable cost is $25 per unit. The revenue is $30 per unit. The break-even point for the Viking 2000 is

• A) 3,200 units
• B) 2,666.67 units
• C) 1,454.55 units
• D) 16,000 units

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Definitions:

Albert Ellis

A psychologist known for developing Rational Emotive Behavior Therapy (REBT), a form of cognitive-behavioral therapy focusing on changing irrational beliefs.

Aaron Beck

A psychiatrist known as the father of cognitive therapy, which focuses on changing negative thoughts and beliefs.

Placebo Effect

The apparent success of a medication or treatment due to the patient’s expectations or hopes rather than to the drug or treatment itself.

Novelty Bias

The tendency of individuals to prefer novel objects or experiences over familiar ones.