A Manager Has Determined That a Potential New Product Can

question 18

Multiple Choice

A manager has determined that a potential new product can be sold at a price of $20.00 each. The cost to produce the product is $10.00, but the equipment necessary for production must be leased for $75,000 per year. What is the break-even point?

• A) 2,500 units.
• B) 5,000 units.
• C) 7,500 units.
• D) 10,000 units.
• E) 25,000 units.

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Definitions:

Cognitive Dissonance

The discomfort felt when attitude and behaviour are inconsistent.

Inconsistent Attitudes

The exhibition of beliefs, feelings, or behaviors that contradict each other or fluctuate over a period of time.

Job Satisfaction

The extent of positive feelings or attitudes that individuals have towards their jobs.

Organizational Commitment

The loyalty an individual feels toward the organization.