Maize Plastics Manufactures and Sells 50 Bottles Per Day

question 108

Multiple Choice

Maize Plastics manufactures and sells 50 bottles per day.Fixed costs are $30,000 and the variable costs for manufacturing 50 bottles are $10,000.Each bottle is sold for $1,000.How would the daily profit be affected if the daily volume of sales drop by 10%?

• A) profits are reduced by $4,000
• B) profits are reduced by $1,000
• C) profits are reduced by $5,000
• D) profits are reduced by $6,000

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Definitions:

Psychosexual Stages

A theory proposed by Freud that child development occurs in five stages (oral, anal, phallic, latency, genital) each associated with pleasure in different parts of the body.

Projective Tests

Psychological assessments that involve presenting individuals with ambiguous stimuli and interpreting their responses based on the projection of their subconscious thoughts and feelings.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, imposing ethical standards and societal rules.

Ego

In psychoanalytic theory, the part of the personality that mediates between the impulses of the id, the demands of the environment, and the standards of the superego.