Assume That You Can Sell a New Product at $5

question 70

Multiple Choice

Assume that you can sell a new product at $5.00 per unit. Your variable costs are $3.00 per unit and you fixed costs are $20,000. What will be your profit before taxes if you sell 12,000 units next year?

• A) $0
• B) $1,000
• C) $2,000
• D) $4,000
• E) $8,000

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Definitions:

Stator Coil Windings

Coils of wire wound around the stationary part of an electric motor or generator, which generate magnetic fields when electric current flows through them.

Full-load Speed

The speed at which a motor operates when it is carrying its rated load under specified conditions.

Rated Horsepower

The manufacturer's specified maximum power output of a motor under ideal conditions.

Electrical Distribution System

A network of components that delivers electricity from the transmission system to the end user.