[The Following Information Applies to the Questions Displayed Below

question 31

Multiple Choice

[The following information applies to the questions displayed below.]
Creative Star Corporation produces three lines of desks from wood: Classic,Royal,and Standard.Cost and revenue data pertaining to each product are shown below:
Classic desks require five square yards of wood,Royal requires ten square yards,and Standard requires three square yards.High demand for each product line far exceeds the company's production capacity.
-If Creative Star Corporation has only 250,000 square yards of wood available,what is the highest total amount of fixed cost the company can incur and still break-even?

• A)$2,500,000
• B)$4,000,000
• C)$5,000,000
• D)$6,000,000

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Definitions:

Traits

Characteristic patterns of thoughts, feelings, or behaviors that are relatively stable over time and across situations.

Heredity

The transmission of genetic characteristics from parents to offspring through their genes.

Bone Growth

The process by which bones increase in size, which occurs through both the development and hardening of cartilage into bone (ossification) and the addition of bone tissue.

Nutrient

A constituent of food necessary for normal physiologic function.