Excel Hardware Is Introducing a New Product on a New

question 20

Multiple Choice

Excel hardware is introducing a new product on a new product line of capacity 800 units per week at a production cost of $50 per unit. Fixed costs are $22 400 per week. Variable selling and shipping costs are estimated to be $20 per unit. Excel plan to market the new product at $110 per unit. What would be the weekly net income at 90% of the capacity?

• A) $9600
• B) $7200
• C) $6400
• D) $56 800
• E) $20 800

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Definitions:

Gate Theory

A theory that suggests the spinal cord contains a neurological "gate" that controls the transmission of pain signals to the brain.

Trichromatic Theory

A theory explaining how the human eye perceives colors through the response of three types of cones sensitive to blue, green, and red light.

Retinex Theory

suggests that color perception is not solely based on the wavelengths of light reaching the eye but also involves an active processing of visual information by the brain to maintain color constancy under different lighting conditions.

Cutaneous Senses

The sensory systems associated with the skin that detect touch, temperature, and pain.