Noel Stewart Bought a Machine Two Years Ago for £500

question 26

Multiple Choice

Noel Stewart bought a machine two years ago for £500. He must now replace the old machine by buying a new model 206 for £700 or a used model 204 for £650. Noel has decided to buy model 204.
Noel Stewart has estimated that the total fixed costs for his department are £10,000. He also estimated that his variable cost per unit is £10.
Noel Stewart bought some materials 2 years ago for £300. These materials have simply been left in stock as they were not needed. A new customer offers to buy a product that uses these materials. The conversion cost is £500 and the customer has offered to pay £650 for the product. Noel decides to accept the order.
-If Noel produced only one unit his fixed cost per unit would be:

• A)£10,000.
• B)£100.
• C)£1,000.
• D)£0.

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Definitions:

Elderly Patients

Individuals of advanced age receiving medical care or treatment.

Geriatricians

Medical doctors specializing in the care, treatment, and prevention of diseases and conditions affecting older adults.

Symptoms

Indicators or signs of a condition or disease experienced by an individual, such as pain, fever, or fatigue.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.