Zed Company Sells Two Kinds of Mainframe Computer Power Supplies

question 32

Multiple Choice

Zed Company sells two kinds of mainframe computer power supplies.The company projected the following cost information for the two products: $\begin{array}{lrr}&\text { Standard } & \text { Heavy-Duty } \\&\text { Supply } & \text { Supply }\\ \text { Unit selling price} &\$250&\$120\\ \text { Unit variable cost} &\$110&\$50\\ \text { Number of units produced and sold } &7,000&3,000\end{array}$
Assume that total fixed costs are $428,400.How many units of the standard supply unit would be included in the total number of units required to break even with the projected sales mix? (Round your answer to the nearest whole unit)

• A) 3,600 units
• B) 2,520 units
• C) 1,080 units
• D) 2,040 units

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Definitions:

Neo-Marxist Philosophy

An approach that extends Marxist theory to include cultural and ideological factors influencing social structure and class relations.

International Division

The differentiation of tasks, production, or labor on a global scale, often leading to economic disparities between nations.

Differential Profits

Differential profits refer to the variation in profits earned by businesses due to differences in efficiency, market conditions, or innovation, highlighting disparities in economic performance.

Modernization Theory

A theory suggesting that societies progress linearly from traditional to modern states of development, emphasizing the role of technology, economic growth, and socio-political changes.