Break-Even Analysis

question 44

Multiple Choice

Break-even analysis. Poisson Calculators has found that it is indifferent between purchasing a high-capacity vacuum component assembly machine or a lower capacity machine as long as sales are above 1,900 units per month. The price of each calculator is $70. The high-capacity machine has cash expenses of $100,000 per month and depreciation and amortisation expenses of $30,000 per month, while the alternative has cash expenses of $30,000 per month and depreciation and amortisation expenses of $5,000 per month. Under the low-capacity alternative, variable costs per unit are $60. If the company bases its decisions on the Accounting Operating Profit Break-even, then what is the variable cost per unit under the high-capacity alternative?

• A) $10
• B) $47
• C) $60
• D) $70

---

Definitions:

George Ritzer

An American sociologist known for his work on consumerism, globalization, and the concept of McDonaldization, which describes the process by which the principles of the fast food industry dominate sectors of society.

Objective-Subjective Continuum

Refers to the range between objectively measurable facts and subjective perceptions or experiences, relevant in research and theory across disciplines.

World Systems

A sociological perspective that analyzes societies in terms of their position within global economic and political systems.

Micro-Level Troubles

Issues or problems experienced by individuals or small social groups, often contrasted with large-scale societal issues.