Break-Even Analysis

question 1

Multiple Choice

Break-even analysis. TimeKeepers is about to introduce a new LED clock and has determined that it will charge $30 per clock. The company must decide whether or not to purchase a high-capacity clock-making machine. If the high-capacity machine is selected, then the fixed costs for the company will be $5,000 per year, with variable costs of $5 per clock. Otherwise the fixed costs will be $1,000, with variable costs of $15 per clock. Above what level of expected sales should TimeKeepers choose the high fixed cost alternative?

• A) 400 units
• B) 500 units
• C) 4,000 units
• D) 5,000 units

Identify and use the Query Design view functionalities.

Understand how to effectively display and format query results for easy interpretation.

Learn how to manage null and zero-length field values in queries.

Gain knowledge on the manipulation of database objects based on specific query criteria.

---

Definitions:

Excess Demand

A situation in which the demand for a product exceeds the supply at a set price, leading to shortages.

Bluetooth Headsets

Wireless headsets that use Bluetooth technology to connect with devices such as smartphones, computers, or other electronic devices for audio transmission.

Quantity Demanded

The amount of a good or service that buyers are willing and able to purchase at a specific price.

Excess Demand

Excess demand occurs when the quantity demanded of a good or service at the current price exceeds the quantity supplied, often leading to upward pressure on prices.