NewDigger Inc

question 28

Multiple Choice

NewDigger Inc.makes backhoes for digging ditches and trenches.It has developed an acid that,when poured on the ground,reduces the time and labor required to dig trenches of various depths,depending on how much is applied.The firm has recently started using this product commercially.This would most probably be considered a(n) _____ project for NewDigger.

• A) derivative
• B) platform
• C) breakthrough
• D) additive

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Definitions:

Automated Equipment

Automated equipment consists of machinery and tools that operate with minimal human intervention, often used in manufacturing to increase efficiency and reduce labor costs.

Break-Even Point

The level of sales or production at which a business's revenues equal its expenses, resulting in neither profit nor loss.

Contribution Margin

The difference between sales revenue and variable costs of a product, indicating how much contributes to covering fixed costs and generating profit.

Break Even

The point at which total costs equal total revenue, meaning that a business or project is neither making a profit nor incurring a loss.