Northern Woods Is Considering Two Methods of Production for a New

question 30

Multiple Choice

Northern Woods is considering two methods of production for a new product.The first method will require fixed assets costing $450,000 that will be depreciated straight-line to zero over the product's 3-year life.Annual fixed costs are $316,000 and variable costs per unit are $8.64.The second method will require fixed assets costing $790,000,annual fixed costs of $211,000,and variable costs per unit of $6.57.The firm expects to sell 46,000 units per year at $20 a unit.The discount rate is 16 percent and the tax rate is 21 percent.Should the product be produced and if so,which method of production should be implemented and why?

• A)Yes; Method A; because A has the lower initial cost
• B)Yes; Method A; because it will break-even on a financial basis with fewer annual sales
• C)Yes; Method B; because it has lower annual costs
• D)Yes; Method B; because B has a financial break-even quantity that is less than the expected sales units
• E)No; Neither method of production will financially break-even within the expected life of the project.

Differentiate between the functions of distinct nerves.

Describe the sympathetic division's effects on visceral organ activity.

Identify the potential consequences of nerve damage.

Distinguish between the components of a typical reflex arc.

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Definitions:

Elderly

Individuals, typically of advanced age, often considered to be past the common retirement age, who may face distinct social and health challenges.

Disability

A physical or mental condition that limits a person's movements, senses, or activities.

Gerontocracy

A society ruled by elderly people.

Sociology

The study of the development, structure, and functioning of human society, as well as the systematic study of social problems.