Vango Industries Sells Two Products, Basic Models and Deluxe Models

question 109

Multiple Choice

Vango Industries sells two products, Basic models and Deluxe models. Basic models sell for $40 per unit with variable costs of $30 per unit. Deluxe models sell for $48 per unit with variable costs of $40 per unit. Total fixed costs for the company are $76,000. Vango Industries typically sells three Basic models for every Deluxe model. What is the break-even point in total units?

• A) 6,909 units
• B) 8,000 units
• C) 13,818 units
• D) 4,000 units

---

Definitions:

Homeobox

A short (180-nucleotide) DNA sequence that characterizes many homeotic genes as well as some other genes that play a role in development.

Translation

The process in which ribosomes synthesize proteins using the mRNA transcript as a template.

Totipotent

Describes cells that have the potential to differentiate into any type of cell in an organism, including embryonic and extraembryonic structures.

Adult Stem Cells

Adult stem cells are undifferentiated cells found throughout the body after embryonic development that can differentiate into specialized cell types and divide to replenish dying cells and regenerate damaged tissues.