Friar Corp. sells two products. Product A sells for $100 per unit, and has unit variable costs of $60. Product B sells for $70 per unit, and has unit variable costs of $50. Currently, Friar sells three units of product B for every one unit of product A sold. Friar has fixed costs of $750,000. What is Friar's break-even point in units?
A. 15,000 units of A and 15,000 units of B
B. 30,000 units of A and 30,000 units of B
C. 7,500 units of A and 22,500 units of B
D. 22,500 units of A and 7,500 units of B
Answer: C
You might also like to view...
The Lucas Company offers employees a defined contribution pension plan. In 2015, Lucas contributed $175,000 to the plan, which paid $195,000 to retired employees. Which of the following statements is true?
A) Lucas will record an accrued liability of $20,000. B) Lucas will report pension expense of $175,000. C) Lucas will recognize prior service cost of $20,000. D) Lucas will recognize actuarial gains and losses on the plan over current and future periods.
Which of the following is the first step in making an ethically responsible decision?
A. Monitoring and learning from the outcomes B. Considering the available alternatives C. Comparing and weighing alternatives D. Determining the facts of the situation
Tom Jordan is a manager for a McDonald's restaurant. Many of his key responsibilities include analyzing data and making key decisions for the success of his store. Tom's store has been experiencing decreased sales for breakfast services over the past three months. Tom is unsure why breakfast revenues are down while lunch and dinner revenues remain unchanged. Tom believes that he can drive revenue up by implementing a few different breakfast promotions such as free coffee or hash browns with the purchase of a meal. Tom performs an extensive analysis of how continuous changes in breakfast promotions could impact his daily revenue. What type of DSS analysis is Tom performing?
A. Sensitivity analysis B. Goal-seeking analysis C. Optimization analysis D. Transaction analysis
Adverse impact means that
A. men are paid less than women. B. employment decisions reject a higher percentage of a protected class than a nonprotected class. C. efforts are made to recruit a larger percentage of minorities. D. religion as a bona fide occupational qualification is permitted at the workplace.