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:

Intuition

An understanding or insight gained without the need for conscious reasoning.

Possibilities

Various opportunities or prospects that are available or could be available in the future.

Situation

The set of circumstances and conditions affecting the way in which a task, action, or idea is to be executed or considered.

Risk Averse

a characteristic describing individuals or entities that prefer to avoid risks, often seeking safer or more predictable outcomes.