Zed Company Sells Two Kinds of Mainframe Computer Power Supplies

question 128

Multiple Choice

Zed Company sells two kinds of mainframe computer power supplies.The company projected the following cost information for the two products: $$\begin{array} { | l | r | r | } \hline & { \begin{array} { l } \text { Standard } \\\text { Supply }\end{array} } &{ \begin{array} { l } \text { Heavy-Duty } \\\text { Supply }\end{array} } \\\hline \text { Unit selling price } & \$ 250 & \$ 120 \\\hline \text { Unit variable cost } & \$ 110 & \$ 50 \\\hline \begin{array} { l } \text { Number of units produced and } \\\text { sold }\end{array} & 7,000 & 3,000 \\\hline\end{array}$$ Assume that total fixed costs are $428,400.How many units of the standard supply unit would be included in the total number of units required to break-even with the projected sales mix (round your answer to the nearest whole unit) ?

• A) 3,600 units
• B) 2,520 units
• C) 1,080 units
• D) 2,040 units

Define the law of supply and its implications.

Understand the concept of demand and factors that affect it.

Interpret graphical representations of supply movements and shifts.

Understand the principles and rules governing sales of goods, including the effects of warranties, conditions, and the passing of risk.

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Definitions:

Unemployment Insurance

A public scheme offering monetary help to people unemployed due to reasons beyond their control.

Economy

The system by which goods and services are produced, distributed, and consumed in a society.

Unemployment Insurance

A government-managed program that provides financial assistance to individuals who have lost their jobs through no fault of their own, to support them while they search for new employment.

Well-being

A comprehensive term for the condition of an individual or group, encompassing physical, psychological, and social aspects.