Excom Fiberoptics Is Bidding on Contracts to Sell Micro Test

question 22

Multiple Choice

Excom Fiberoptics is bidding on contracts to sell micro test tubes for biotechnology research. in sets of 1,000 tubes. Fixed costs including depreciation associated with the project are $2,000,000, variable cost per set is $16. Excom expects to sell 250,000 sets. What is the minimum price it can charge and reach the accounting break-even point?

• A) $8
• B) $12
• C) $24
• D) $20

---

Definitions:

Skin Temperature

The surface temperature of the body which can vary in response to environmental conditions and physiological factors.

Evaporation

Change from liquid to vapor form.

Sweating

The process by which the body secretes fluids from sweat glands to cool down.

Protein-sparing Effect

A phenomenon in nutrition where adequate carbohydrate intake prevents the breakdown of proteins for energy, thus sparing them for their primary functions.