Use the Breakeven Model to Determine Which of the Statements

question 1

Multiple Choice

Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility.? $\begin{array}{ccc}\text { LOCATION } & \text { ANNUAL FIXED COSTS } & \text { UNIT VARIABLE COSTS } \\\hline \text { Site } A & \$ 50,000 & \$ 10 \\\text { Site B } & \$ 20,000 & \$ 30\end{array}$

• A)Site A is the desired location if the production rate is 1000 units per year
• B)The breakeven point for these two locations is 1500 units per year
• C)Site B is the desired location if the production rate is 2000 units per year
• D)The breakeven point for these two locations is 500 units per year

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Definitions:

Proclamation of 1763

A decree issued by the British crown aimed at stabilizing relations with Native American populations by limiting colonial expansion westward beyond the Appalachian Mountains.

Colonial Frontier

The border or edge of a colony's territory, where expansion and encounters with indigenous populations often took place.

Ohio Valley

A geographical region in the United States encompassing parts of the states around the Ohio River, significant for its early colonial history and development during westward expansion.

Imperial Rivalries

Conflicts and competition for overseas territories and power among European empires from the 15th to early 20th centuries.