Suppose You Are the Owner of a Picture Frame Store

question 346

Multiple Choice

Suppose you are the owner of a picture frame store and you wish to calculate how many pictures you must sell to cover your fixed and variable costs at a given price.Demand for pictures is strong,so the average price customers are willing to pay for each picture frame is $120.20.20.20.20.20.20.20.Also,suppose your fixed costs (FC) total $32,000 (real estate taxes,interest on a bank loan,etc.) and unit variable cost (UVC) for a picture frame is $40 (labor,glass,frame,and matting) .What is the quantity of picture frames you will need to sell to break-even?

• A) 200 picture frames
• B) 400 picture frames
• C) 800 picture frames
• D) 1,600 picture frames
• E) 2,000 picture frames

---

Definitions:

Fractional Horsepower Motors

Electric motors with a power rating less than one horsepower, commonly used in household appliances.

Manual Motor Starters

Manual motor starters are devices used to manually turn on or off electric motors, providing protection by allowing the controlled starting and stopping, as well as overload protection.

Stator Unit

The stationary part of an electric machine, such as a motor or generator, which works in conjunction with the rotor to induce motion or generate electricity.

Energizes

The act of supplying electrical power to a circuit or component, causing it to operate.