Fred's Fabrication, Inc

question 24

Multiple Choice

Fred's Fabrication, Inc. wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $70,000. The variable cost for A is $9.00 per unit and for B, $14.00. The revenue generated by the units processed on these machines is $20 per unit. The crossover between machine A and machine B is

• A) 4,000 units, with A more profitable at low volumes
• B) 4,000 dollars, with A more profitable at low volumes
• C) 4,000 units, with B more profitable at low volumes
• D) 4,000 dollars, with B more profitable at low volumes
• E) none of the above

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Definitions:

Erotic Plasticity

The degree to which an individual's sex drive and sexual interests can change based on various social, environmental, and situational factors.

Cheating

The act of being dishonest, deceitful, or breaking rules to gain an unfair advantage.

Jealous

Feeling or showing suspicion of someone's achievements or advantages, or fear of losing affection or position to a rival.

Predict Decline

To forecast a decrease or deterioration in condition, value, or performance.