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

question 28

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 decision-making, the management accountant has supplied the following information:
$\begin{array}{lll}&\text { Without }&\text { With }\\&\text { turning machine }&\text { turning machine }\\\text { Expected level of sales } & 1500 \text { units } & 1500 \text { units } \\\text { Sales price per unit } & \$ 150 & \$ 150 \\\text { Variable costs per unit } & \$ 120 & \$ 110 \\\text { Fixed costs } & \$ 7,500 & \$ 15,000\end{array}$
-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:

Inhalation

The act of breathing in, which allows air or other substances to enter the lungs.

Upward

A direction or movement toward a higher position or place.

Bronchioles

The small airway passages in the lungs that extend from the bronchi and lead to the air sacs (alveoli).

Capillaries

The smallest blood vessels in the body, responsible for the exchange of various substances between the blood and surrounding tissues.