A Company Is Investigating Two Automated Approaches for Its Production

question 46

Multiple Choice

A company is investigating two automated approaches for its production process. It has collected the following cost information about each:
$\begin{array}{|l|c|c|}\hline \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \\\hline \text { CNC } & \$ 80,000 & \$ 2.75 \\\hline \text { FMS } & \$ 190,000 & \$ 1.25 \\\hline\end{array}$
-The breakeven volume is _____.

• A) less than or equal to 20,000 units
• B) more than 20,000 but less than or equal to 40,00 units
• C) more than 40,000 but less than or equal to 60,000 units
• D) more than 60,000 but less than or equal to 80,000 units

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Definitions:

Slanderous Campaign Ads

Advertising efforts during a campaign that spread false and damaging statements about an opponent.

Vote Determination

The process by which decisions are made or leaders are chosen in a democratic system through the aggregation of individual votes.

Profit Maximization

The process or strategy of adjusting production and sale operations to achieve the highest possible profit.

Production Function

Describes the relationship between inputs used in production and the output generated from those inputs.