SeptSeven Has Found That It Is Indifferent Between Purchasing a High-Capacity

question 50

Multiple Choice

SeptSeven 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 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 amortization expenses of $30,000 per month, while the alternative has cash expenses of $30,000 per month and depreciation and amortization expenses of $5,000 per month. Under the low-capacity alternative, variable costs per unit are $60. If the firm 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

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Definitions:

American Psychiatry

A medical specialty in the United States focusing on the diagnosis, treatment, and prevention of mental, emotional, and behavioral disorders.

Couples and Family Therapist

A mental health professional who specializes in treating emotional, mental, and behavioral issues within the context of couples or family relationships.

Family System

A concept in psychology and sociology referring to a family viewed as a complex, interdependent unit where changes in one part affect the whole system.

Communication

The process of transmitting information, feelings, and thoughts from one entity or group to another through various channels and media.