Chelonia Ltd Manufactures Small Robot Toys

question 63

Multiple Choice

Chelonia Ltd manufactures small robot toys. It plans to introduce a new product, Speedie the robot tortoise. The following activity cost information is available:
It is expected that each unit of Speedie will sell for $23. The direct material cost for unit is $10. What is the break-even point in units?
(For simplicity, assume that you can have partial moves and partial batches - that is, no need to round up the number of batches and the number of moves.)

• A) 518 units
• B) 1000 units
• C) 1250 units
• D) 2850 units

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Definitions:

Compression

The act of pressing together; in geology, it refers to the stress applied to materials causing a decrease in volume or shortening.

Thrust Faulting

A geological process where one rock layer is pushed up over another, often leading to mountain building.

Overriding Plate

The tectonic plate that sits above another plate at a convergent boundary, often responsible for mountain building and volcanic activity.

Ocean-Continent Convergent Boundary

A plate-tectonic boundary where an oceanic plate converges with a continental plate, generally expressed by subduction of the oceanic plate beneath the continent.