Answer the Following Questions Using the Information Below

question 13

Multiple Choice

Answer the following questions using the information below:
Gosford Manufacturing produces a single product that sells for $200.Variable costs per unit equal $50.The company expects total fixed costs to be $140 000 for the next month at the projected sales level of 2000 units.In an attempt to improve performance,management is considering a number of alternative actions.Each situation is to be evaluated separately.
-What is the current break-even point in terms of number of units?

• A)934 units
• B)2400 units
• C)1000 units
• D)None of these answers are correct.

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Cash Flows

The movement of money into and out of a business, project, or financial product, reflecting its operational and financial health.

Simulation Models

Computational models that mimic the operations of real-world processes or systems for the purpose of analysis or decision-making.

Flexible Capacity

Denotes the ability of a business or production system to adjust output levels or operations in response to changes in demand or market conditions.