Miniature Molding Is Planning to Introduce a Valve for Use

question 33

Multiple Choice

Miniature Molding is planning to introduce a valve for use in medical implants. Variable costs per unit are $250. The maximum price MM could charge is $325. Fixed costs associated with this product are $20,000,000. The worst case forecast calls for sales of 240,000 valves, the best case for 290,400. Will MM reach accounting break-even in the worst case scenario?

• A) Sales will fall short of break even by $8,666,667.
• B) The product will exactly break even.
• C) Sales will fall short of break even by $5,000,025.
• D) Sales will exceed break even $58,000,000.

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Definitions:

Misuse

Misuse is the incorrect, improper, or excessive use of something, often leading to negative outcomes or harm.

Preventive Approach

Strategic actions taken to avoid potential problems or diseases before they occur.

Aging

The process of becoming older, a series of biological changes that occur in all living organisms over time, often leading to a gradual decrease in physical and sometimes mental capacity.

Discrimination

Unjust or prejudicial treatment of different categories of people, often based on race, age, sex, or disability.