For a Capital Intensive, Automated Company the Break-Even Point Will

question 318

True/False

For a capital intensive, automated company the break-even point will tend to be higher and the margin of safety will be lower than for a less capital intensive company with the same sales.

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Definitions:

Ohm Load

An electrical load with a specific resistance value, measured in ohms, determining how much current will flow for a given voltage.

Primary Current

The current flowing through the primary winding of a transformer or another electrical device intended for initial energy transformation.

Secondary

The coil in a transformer that receives energy from the primary coil through electromagnetic induction, thereby transferring energy from the primary to the load.

Laminated Construction

A manufacturing technique used in electrical machines and transformers to minimize eddy current losses by stacking thin sheets of metal together.