The Clothes Factory wants to increase capacity by adding a new sewing machine. The fixed costs for machine A are



Question 1

(TCO 8) The Clothes Factory wants to increase capacity by adding a new sewing machine. The fixed costs for machine A are $9,000, and its variable cost is $4 per unit. The revenue is $7 per unit. The break-even point for the sewing machine is

1,200 units.

1,600 units.

3,000 units.

1,500 units.

Question 2

(TCO 9) A truck stop is considering opening a new facility on the Interstate. The table below shows its ratings of four factors at each of two potential sites.

Factor Weight Gary Mall Belt Line

Affluence of Local Population .20 40 40

Traffic Flow .40 50 20

Parking Availability .20 30 40

Growth Potential .20 10 30

The score for Gary Mall is _____, and the score for Belt Line is _____.

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