The Cost Components of a Heater Include $35 for the Compressor

question 70

Multiple Choice

The cost components of a heater include $35 for the compressor, $12 for the sheet molded compound frame, and $80 per unit for assembly.The factory machines and tools fixed cost is $55,000.The company expects to produce 1,500 heaters in the coming year.What cost function best represents these costs?

• A)y = 1,500 + 127X
• B)y = 1,500 + 55,000X
• C)y = 55,000 + 1,500X
• D)y = 55,000 + 127X
• E)y = 55,080 + 47X

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Definitions:

Takeover Bids

are proposals or offers made by an entity to acquire control of another company, typically by purchasing a majority of its stock.

Corporate Managers

Individuals who are in charge of directing and overseeing the operations and strategies of a corporation.

Stockholders

Individuals or entities that own shares in a corporation, thus holding a portion of its equity and potentially benefiting from its profits.

Principal-Agent Problem

A dilemma in which one party (the agent) is supposed to act in the best interest of another party (the principal) but may act in their own interest instead due to conflicts of interest.