Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 12

Multiple Choice

Use the information below to answer the following questions.
Unique Tables manufacture coffee tables made of recycled timber. Market research has suggested that there will be strong demand for the tables. Due to this, management is debating whether to lease a new turning machine to meet increased production. To assist in their decisionmaking, the management accountant has supplied the following information: $\begin{array}{lll}&\text { Without }&\text {With }\\&\text { turning machine }&\text { turning machine }\\\hline\text { Expected level of sales } & 1,500 \text { units } & 1,500 \text { units } \\\text { Sales price per unit } & \$ 150 & \$ 150 \\\text { Variable costs per unit } & \$ 120 & \$ 110 \\\text { Fixed costs } & \$ 7500 & \$ 15,000\end{array}$
-Refer to the table above. At the current level of sales, which of the following results are achieved?

• A)Without the turning machine profit of $45,000. With the turning machine profit of $52,500.
• B)Without the turning machine profit of $30,000. With the turning machine profit of $22,500.
• C)Without the turning machine profit of $37,500. With the turning machine profit of $45,000.
• D)None of the above.

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Definitions:

Depictions

Refers to the act of representing, describing, or portraying something in art or literature.

Investment Opportunities

Situations or options available for investing capital with the potential of generating returns or profits.

Interbellum Generation

The cohort of people born in the period between the end of World War I and the start of World War II, known for experiencing significant social and economic changes.

Silent Generation

The demographic group born between the mid-1920s to early 1940s, known for their conservative attitudes and preference for stability and silence over chaos and change.