Use the Following Information to Answer the Questions Below

question 98

Multiple Choice

Use the following information to answer the questions below.
You currently make a part for old equipment at a cost of $20 / unit. The annual fixed cost for this equipment is $50,000. You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year (see table) .

-Refer to the instruction above. What is the break even quantity between buying and making?

• A) 30,000 units per year
• B) 40,000 units per year
• C) 50,000 units per year
• D) 60,000 units per year

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Definitions:

Petty Bourgeoisie

In Marx’s usage, is the class of small-scale capitalists who own means of production but employ only a few workers or none at all, forcing them to do physical work themselves.

Small-Scale Capitalists

Individuals or businesses that operate on a limited scale in terms of resources, investment, and production, often emphasizing personal rather than corporate gain.

Relationship to the Means of Production

A concept in Marxist theory referring to the dynamics and conflicts arising from the way individuals and groups relate to the ownership and control of production resources.

Source of Income

The origin or means by which an individual, entity, or government receives money, typically for work performed, investments, or other financial mechanisms.