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

---

Definitions:

Emotional Intelligence

The ability to recognize, manage, and express one's own feelings, while also dealing with social interactions wisely and with empathy.

Regulation of Emotions

The process by which individuals influence which emotions they have, when they have them, and how these emotions are experienced and expressed.

Expression of Emotions

How feelings are communicated to others, through facial expressions, voice, body language, and behavior.

Divergent Thinking

A cognitive mechanism or methodology for creating innovative concepts by considering a wide range of solutions.