The XYZ Manufacturing Company Produces Ball Bearings

question 21

Multiple Choice

The XYZ manufacturing company produces ball bearings. The annual fixed cost is $20,000 and the variable cost per ball bearing is $3. The price is related to demand according to the following equation:
V = 1000 - 8p. What is optimal profit?

• A) $6668
• B) $7668
• C) $8668
• D) $9768

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Definitions:

Inter Vivos Trust

A trust created and implemented during the lifetime of the grantor to manage or protect assets.

Mental Capacity

The legal ability of a person to make decisions or enter into a contract, which requires understanding and appreciating the implications of one's actions.

Valid Contract

An agreement that has met all legal requirements, making it enforceable by law.

Inter Vivos

A transaction between living persons.