Company Y Is Considering Two Production Technologies,Bronze and Platinum,for Producing

question 70

Multiple Choice

Company Y is considering two production technologies,Bronze and Platinum,for producing its new product.The cost structures of the two technologies are as follows:
At what level of sales volume in units (rounded to the nearest whole unit) would Company Y be indifferent in choosing between the Bronze and Platinum technologies?

• A) 10,000 units.
• B) 12,100 units.
• C) 13,000 units.
• D) Cannot be determined without additional information.

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Definitions:

Certificate of Organization

A legal document filed with a state government to officially form a limited liability company (LLC) within that state.

Corporate Prospectus

A formal document that companies issue to potential investors, detailing the financial health, risks, and objectives of the company, often in the context of a public stock offering.

Stock Certificate

A document that serves as a stockholder’s proof of ownership in a corporation.

Negotiable Instrument

A written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument; an acceptable medium for exchanging value from one person to another.