A Software Company That Sells Its Software Pre-Installed in Personal

question 78

Multiple Choice

A software company that sells its software pre-installed in personal computers is considering making its own computers instead of purchasing them from the Mega-Chip Company.To assemble their own computers could cost $1,000,000 in fixed costs and $100 per unit in variable costs.The company currently buys PCs for $1200,with no fixed costs.What is the break-even quantity?

• A)greater than or equal to 1800
• B)greater than 900 but fewer than 1800
• C)greater than 450 but fewer than 900
• D)less than 450

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Definitions:

Similar Needs

Refers to the common or comparable requirements and desires of individuals or market segments.

Production Orientation

A business strategy focusing on production efficiency and product quantity rather than customer needs or preferences.