A New Product Is Being Considered That Will Require $45,000

question 69

Multiple Choice

A new product is being considered that will require $45,000 in fixed costs per year.Variable costs per unit are estimated to be $12.72.The firm wants to break even if 8000 units are produced and sold per year.What should be the price?

• A)less than $16.00
• B)between $16.00 and $16.99
• C)between $17.00 and $17.99
• D)between $18.00 and $18.99

Calculate probabilities and parameters (mean, variance, expected value) for various probability distributions.

Distinguish between characteristics of continuous and discrete probability distributions.

Interpret the effects of changes in the parameters of a probability distribution on its shape and probabilities.

Utilize standard normal distribution properties and calculations, including z-values and probabilities.

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Definitions:

Medium-Term Cost

Expenses or investments expected to impact an organization's financial health over a moderate timeframe, usually between one to five years.

Facility Shutdowns

The process of closing business facilities temporarily or permanently, which may result from economic, strategic, or operational decisions.

Operation Reductions

A strategy aimed at decreasing the complexity and costs of business operations, often through simplifying processes, cutting unnecessary tasks, or outsourcing.

Work Redesign

Modifying job roles and organizational structures to improve employee satisfaction, efficiency, and productivity.