Mullis Corp

question 97

Multiple Choice

Mullis Corp.manufactures DVDs that sell for $5.00.Fixed costs are $28,000 and variable costs are $3.60 per unit.Mullis can buy a newer production machine that will increase fixed costs by $8,000 per year,but will decrease variable costs by $0.40 per unit.What effect would the purchase of the new machine have on Mullis' break-even point in units?

• A)4,444 unit increase.
• B)9,850 unit decrease.
• C)5,714 unit increase.
• D)4,444 unit decrease.
• E)No effect.

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Definitions:

Bystander Intervention

The act of stepping in to prevent or halt an inappropriate or dangerous situation, often used in contexts of bullying or assault prevention.

Bystander Effect

A behavioral pattern observed in social psychology where the presence of others reduces the likelihood of a person to assist someone in distress.

Latané and Darley

Social psychologists who researched the bystander effect, demonstrating how the presence of others affects the likelihood of helping behavior.

Bystander Effect

A phenomenon in social psychology where people are less inclined to assist a victim if there are others around.