The Mini-Max Company Has the Following Cost Information on Their

question 23

Multiple Choice

The Mini-Max Company has the following cost information on their new prospective project. Fixed costs are $200/year. (Initial investment is $700) .
Variable costs: $3/unit.
Depreciation: $140/year.
Price: $8/unit.
Discount rate: 12%.
Project life: 3 years.
Tax rate: 34%.
Calculate the present value break-even point.

• A) 68.00 units/year.
• B) 113.89 units/year.
• C) 84.42 units/year.
• D) 75 units/year.

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Definitions:

Tactile Corpuscles

Specialized nerve endings in the skin that are responsible for sensitivity to light touch.

Merkel Cells

Specialized skin cells involved in the sense of touch, capable of detecting textures and shapes.

Root Hair Plexuses

Nerve fiber networks found in the dermal layer of the skin that allow for the sensation of touch in hair-covered skin.

Baroreceptors

Sensory nerve endings in the cardiovascular system sensitive to blood pressure changes, helping in reflex control of the blood pressure.