Mullis Corp

question 80

Multiple Choice

Mullis Corp. manufactures DVDs that sell for $5.00. Fixed costs are $28,000 and variable costs are $3.60 per unit. Mullis can buy a newer production machine that will increase fixed costs by $8,000 per year, but will decrease variable costs by $0.40 per unit. What effect would the purchase of the new machine have on Mullis' break-even point in units?

• A) 9,850 unit decrease.
• B) 4,444 unit increase.
• C) 5,714 unit increase.
• D) No effect.
• E) 4,444 unit decrease.

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Definitions:

Key Competencies

Essential abilities and skills that an individual needs in order to be successful in a job or task.

Managerial

Pertaining to the activities, responsibilities, and skills related to managing an organization or a part of it.

Leadership Roles

Positions within an organization tasked with guiding, directing, and influencing others towards achieving collective goals.

Directs

Commands or instructions given with authority to guide or control actions or decisions.