The Selling Price Per Unit Is $25,variable Cost Per Unit

question 185

True/False

The selling price per unit is $25,variable cost per unit $15,and fixed cost per unit is $4.When this company operates above the breakeven point,the sale of one more unit will increase net income by $6.

Understand the components and feedback mechanisms of closed-loop MRP.

Identify the main inputs of a material requirements planning (MRP) system.

Recognize the factors influencing the carrying cost of inventory as a percentage of total cost.

Understand how to balance various costs to decide on the optimal purchase quantity and timing.

---

Definitions:

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.

Luxury

Goods or services that are considered non-essential but desirable and associated with high-quality and high price.

Defensive Medicine

The practice by healthcare providers of ordering tests, treatments, or procedures to protect themselves from potential malpractice lawsuits, rather than to benefit the patient.

Overconsumption

The excessive use of resources or consumption of goods beyond what is sustainable or environmentally sound.