Answer the Following Questions Using the Information Below

question 190

Multiple Choice

Answer the following questions using the information below:
Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:

Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event.
-Kanga Company is considering two different production plans.
Option one: Fixed costs of $10,000 and a breakeven point of 500 units.
Option two: Fixed costs of $20,000 and a breakeven point of 700 units.
Which option should Kanga choose if it is expecting to produce 600 units?

• A) Option one.
• B) Option two.
• C) Both options are equally good.
• D) It isn't possible to determine from the information given.

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Definitions:

Hostile Questions

Questions that are asked in an aggressive manner, often intended to challenge or intimidate the respondent.

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A period during or after a presentation, lecture, or meeting, where participants can ask questions to gain further information or clarification.

Problem Statement

A succinct account of a challenge to be tackled or a state that needs betterment.

Transition

The process or a period of changing from one state or condition to another.