Davison Toaster Corp The Break-Even Point Is
A) Less Than 3,000 Units

question 9

Multiple Choice

Davison Toaster Corp. sells its products for $150 per unit. It has the following costs:
$$\begin{array} { l r r r } \text { Rent } & \$ 115,000 \\\text { Factory labor } & \$ 20 \text { per writ } \\\text { Executive salaries } & \$ 200,000 \\\text { Raw materials } & \$ 6 \text { per witit }\end{array}$$
The break-even point is

• A) less than 3,000 units.
• B) 3,000 units.
• C) more than 3,500 units.
• D) Not enough information has been provided to determine the break-even point.

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Definitions:

Law of Small Numbers

A cognitive bias that leads people to infer or generalize outcomes from a small sample size, mistakenly treating it as representative of a larger population.

Double-Standard Thinking

The application of different sets of principles for similar situations, often leading to unfair or biased judgments.

Prototype

An early sample, model, or release of a product or concept used to test a process or act as a thing to be replicated or learned from.

Ingroup Differentiation Bias

A bias where individuals perceive greater variation and uniqueness among members of their own group (ingroup) compared to those in an outgroup.