ElecHuit Inc

question 55

Multiple Choice

ElecHuit Inc. is in the process of determining whether to purchase a high-capacity machine to make textbooks for the upcoming school year. The high-capacity machine will generate fixed costs of $11,000 per year versus the $2,500 fixed costs of using a low-capacity machine. The variable costs per unit when using the high-capacity machine will be $32. The firm will charge $62 for each textbook and has determined that the high-capacity machine will maximize pretax operating cash flow if sales are greater than 850 books. What is the variable cost per unit under the low-capacity machine scenario?

• A) $25
• B) $42
• C) $35
• D) $89

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Definitions:

Positive Attitudes

The tendency to approach situations, people, and challenges in a positive, optimistic manner.

Neurological System

The network of nerves and cells that transmits signals between different parts of the body and the brain, responsible for controlling and coordinating bodily functions.

Traumatic Psychological Event

An event that causes significant emotional distress and can result in long-term psychological effects, such as PTSD.

Sociocultural Expectations

Norms and standards imposed by society and culture regarding behavior, roles, and practices.