Chelonia Ltd Manufactures Small Robot Toys

question 7

Multiple Choice

Chelonia Ltd manufactures small robot toys. It plans to introduce two products, Speedie and Spunkie. It is anticipated that the product mix will be 40% Speedie and 60% Spunkie. One unit of Speedie will be sold for $100, with variable cost equals $40. For a unit of Spunkie, the selling price will be $120 and the variable cost is $70. The fixed cost for producing the two products is $108 000. What is the break even point?

• A) Speedie: 1200 units; Spunkie: 800 units
• B) Speedie: 800 units, Spunkie: 1200 units
• C) Speedie: 1800 units; Spunkie: 2160 units
• D) Speedie: 2160 units, Spunkie: 1800 units

---

Definitions:

Placenta

The placenta is an organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the fetus while removing waste products.

Teratogens

Agents, such as chemicals or viruses, that can reach the embryo or fetus during prenatal development and cause harm.

Diethylstilbestrol

A synthetic estrogen that was prescribed to pregnant women to prevent miscarriages and premature labor, later found to cause significant health issues.

Blastocyst

A stage of early embryonic development in mammals; it is a structure formed about five days after fertilization, consisting of an inner cell mass, a fluid-filled cavity, and an outer layer of trophoblast cells.