Production Has Indicated That They Can Produce Widgets at a Cost

question 39

Multiple Choice

Production has indicated that they can produce widgets at a cost of $3.00 each if they lease new equipment at a cost of $10,000. Marketing has estimated the number of units they can sell at a number of prices (shown below) . Which price/volume option will allow the firm to avoid losing money on this project?

• A) 7,500 units at $17.50 each.
• B) 4,000 units at $20.00 each.
• C) 3,000 units at $22.50 each.
• D) 2,500 units at $25.00 each
• E) 1,500 units at $27.50 each.

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Definitions:

Tension

The state of being stretched tight, or mental or emotional strain.

Biological Needs

Basic physiological requirements essential for maintaining life, such as food, water, and shelter.

Motives

Internal states or conditions that activate behavior and give it direction towards specific goals or needs.

Equilibrium

Equilibrium is a state of balance or stability within a system, achieved through the equal action of opposing forces.