Figure 3-1 Sonor Systems Undertakes Its Own Machine Maintenance

question 114

Multiple Choice

Figure 3-1 Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units.
See Figure 3-1. If 300,000 machine hours had been worked last year, what would be the total machine maintenance cost?

• A) $600,000
• B) $620,000
• C) $420,000
• D) $220,000

---

Definitions:

Higher Grade

A superior level of quality, achievement, or classification, often used in educational contexts to denote excellence or higher performance standards.

Social Networks

The structures made up of individuals or organizations that are connected by one or more specific types of interdependency, such as friendship, kinship, common interest, financial exchange, dislikes, or relationships of beliefs.

Upward Mobility

The ability for individuals or groups to move to a higher social class or economic position.

Travers and Milgram

Researchers known for their social experiment in the 1960s which demonstrated the "small world phenomenon," illustrating how closely connected humans are through social networks.