When Management Selects Production Technologies That Include a High Proportion

question 34

Multiple Choice

When management selects production technologies that include a high proportion of fixed costs, they:

• A)Decrease their DOL
• B)Increase their DOL
• C)Decrease their NPV break-even level of sales
• D)Reduce the NPV of their cash flows

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Definitions:

Anaerobic Respiration

is a form of respiration using electron acceptors other than oxygen. It often occurs in bacteria and in muscle cells.

Endomysium

A thin layer of connective tissue that surrounds each individual muscle fiber, providing structural support and facilitating the transmission of force.

Organelle

Specialized structures within a cell that perform specific functions necessary for the cell's life.

ATP Energy

The primary energy carrier in all living organisms, ATP (adenosine triphosphate) provides energy for various biological processes by releasing energy when it's broken down into ADP (adenosine diphosphate).