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

question 57

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. As the level of sales increases above 1,500 units, the level of profit would increase:

• A)at the same rate with or without the turning machine.
• B)at a faster rate with the turning machine.
• C)at a faster rate without the turning machine.
• D)none of the above.

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Definitions:

Efficiency

The ability to accomplish a task or goal with a minimal waste of time, effort, and resource.

Network

A system of interconnected people or things.

Tasks

Activities or pieces of work that need to be done or accomplished.

Emotion-focused Coping

A strategy to manage stress by reducing the negative emotional responses associated with stress, rather than confronting the root problems directly.