Better Bonds
Better Bonds Provided the Following Data -Refer to Plastic Gym

question 41

Multiple Choice

Better Bonds
Better Bonds provided the following data: $\begin{array}{lr}\text { Sales } & \$ 540,000 \\\text { Variable costs } & \$ 378,000 \\\text { Fixed costs } & \$ 120,000 \\\text { Expected production and sales in units } & 40,000\end{array}$
-Refer to Plastic Gym. The company expects tree house demand to increase from 4,000 to 8,000 units. Given that demand for tree houses has doubled, what is the sales revenue at break-even assuming the new sales mix?

• A) $140,000
• B) $253,700
• C) $411,250
• D) $665,000

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Definitions:

Partial Pressure

The pressure that a single component of a gas mixture would exert if it occupied the entire volume of the mixture at the same temperature.

Osmotic Gradient

A difference in the concentration of solutes across a semipermeable membrane, which drives osmosis, the movement of water to balance solute concentrations.

First Lungs

Refers to the initial evolutionary development of lungs in the ancestor of terrestrial vertebrates, facilitating air breathing.

Outpouchings

Bulges or protrusions from a hollow structure in the body.