Question 17)

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $29 per unit. What is the break-even point for machine A?

		$6,429
		3,103 units
		6,429 units
		6,000 units
		$90,000

&

QUESTION 24

1. A product has a demand of 4000 units per year. Ordering cost is $80, and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost ________ per year in total annual inventory (holding and ordering) costs.

   		400
   		$2400
   		Zero; this is a class C item.
   		$800
   		$1600