DXZ, Inc currently produces one product which sells for $250 per unit. The company's fixed costs are $75,000
per year; variable costs are $205 per unit.
A salesman has offered to sell the company a new piece of equipment
which will increase fixed costs to $100,000. The salesman claims that the company's break-even point will not
be altered if the company purchases this equipment. What will be the company's new variable cost per unit?
Current break-even point = $75,000/($250 - $
You might also like to view...
A firm that focuses on a ________ orientation is likely to view the market as a homogeneous group that will be satisfied with the basic function of a product
A) production B) consumer C) sustainability D) CRM E) TQM
Your company's leathergoods are very well received in the marketplace. But you still have not been able to resolve the issue of packaging. These bags and briefcases have to be packaged substantially so your customer receives a flawless product, but you have to come up with a solution that will allow the consumer to recycle all that packaging in some way. You decide to solicit suggestions from the staff on how to either implement a recycling program or devise some other packaging methodology that is environmentally friendly. What marketing channel are you managing?
A) Reverse channel B) Dual channel C) Logistic channel D) Distribution channel E) Direct channel
Identify the simple subject in the following sentence: Vaughn, who is the account representative for PMA Industries, will retire on Monday
A) Vaughn B) representative C) account D) Vaughn, who is the account representative for PMA Industries,
When estimating the probability of completing a project by a given time, we often assume that project duration is distributed according to which statistical distribution?
a. Binomial b. Normal c. Exponential d. Poisson