EKA Manufacturing Company Produces Part #2206 for the Aerospace Industry

question 26

Multiple Choice

EKA manufacturing company produces part #2206 for the aerospace industry. Each unit of part #2206 is sold for $15. The unit production cost of part #2206 is $3. The fixed monthly cost of operating the production facility is $3000. How many units of part #2206 have to be sold in a month to break even?

• A) 166.67
• B) 200
• C) 250
• D) 500

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Definitions:

Cognitive Process

Mental activities involved in acquiring, storing, retrieving, and using information, including thinking, reasoning, and problem-solving.

Practice

Repeated exercise in or performance of an activity or skill so as to acquire or maintain proficiency in it.

Task

A piece of work or activity assigned to someone as part of a job or course of study, often requiring effort to complete.

Intent

The purpose or plan that guides an individual's actions or the deliberate determination to perform a specific act.