​Use the Following Setup for Question

question 20

Multiple Choice

​Use the following setup for question
A cloth manufacturing firm is deciding whether or not to invest in new machinery.The machinery costs $45,000 and is expected to increase cash flows in the first year by $25,000 and in the second year by $30,000.The firm's current fixed costs are $9,000 and current marginal cost are $15.The firm currently charges $18 per unit.
-​The current break-even quantity is

• A)​3000
• B)600
• C)500
• D)​300

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Definitions:

Efficiency

The ability to accomplish a task or achieve a goal with the minimal amount of waste, expense, or unnecessary effort.

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Clothing specifically designed and worn for professional occupations, often reflecting the standards and expectations of the industry.

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A professional responsible for managing the approval and distribution of loans for individuals or businesses.

Sales Call

A communication or visit made by a salesperson or representative to a potential buyer for the purpose of promoting, selling products, or services.