[The Following Information Applies to the Questions Displayed Below

question 24

Multiple Choice

[The following information applies to the questions displayed below.]
John Boyd Corporation manufactures and sells 1,000 tractors each month.The primary component in each tractor is the motor.John Boyd has the monthly capacity to produce 1,300 motors.The variable costs associated with manufacturing each motor are shown below:
Fixed manufacturing overhead per month (for up to 1,300 units of production) averages $27,000.Joan Reid,Inc.has offered to purchase 200 motors from John Boyd per month to be used in its own outboard motors.
-What is the incremental cost of producing each additional motor?

• A)$29 per unit
• B)$69 per unit
• C)$95 per unit
• D)Some other amount

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Definitions:

Enzymes

Biological catalysts that speed up chemical reactions in living organisms without being consumed in the process.

Coupled Reaction

A chemical reaction that is driven by another reaction, utilizing the energy released from one reaction to drive another.

Energy

The capacity to do work or produce change, existing in various forms such as kinetic, potential, thermal, electrical, and chemical energy.

Metabolic Pathway

A series of chemical reactions occurring within a cell that leads to the transformation of one substance into another.