Austin Manufacturing Had the Following Operating Data for the Year

question 10

Multiple Choice

Austin Manufacturing had the following operating data for the year just ended.
Management plans to improve the quality of its only product by: (1) replacing a component that costs $3.50 with a higher-grade component that costs $5.50; and (2) renting a packing machine for $18,000 a year. If the desired target profit is $288,000, the company must sell:

• A) 19,300 units
• B) 21,316 units
• C) 22,500 units
• D) 20,842 units

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Definitions:

Predictor

A variable or factor that can be used to forecast or estimate future behavior, outcomes, or trends based on current or past data.

Success

The achievement of a set goal or accomplishment of a desired objective or outcome.

Academic Success

Achieving desired outcomes and objectives in educational settings, often measured by grades, knowledge acquisition, and skill development.

Intelligence

The ability to acquire and apply knowledge and skills.