14. In 2020, Mindy Company sold 3,000 units of laptops at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. The same selling price, variable expenses, and fixed expenses are expected for 2021. What is Mindy's break-even point in sales dollars for 2021? a. $900,000 b. $2,700,000 c. $1,800,000 d. $2,571,429 15. If a company must expand capacity to accept a special order, it is likely that there will be a. an increase in unit variable costs. b. no increase in fixed costs. c. an increase in variable and fixed costs per unit. d. an increase in fixed costs. 16. Zola Company is considering a $100,000 investment that promises the following cash inflows: Year 1, $10,000; Year 2, $20,000; Year 3, $30,000; Year 4, $50,000; and Year 5, $50,000. The payback of this investment is: a. 3.125 years. b. 3.55 years. c. 3.8 years. d. 4 years. 17. When a capital budgeting project generates a positive net present value, this means that the project earns a return higher than the a. internal rate of return. b. profitability index. c. required rate of return. d. none of the above. 18. The decision rule on whether to make or buy? 19. a. The company should buy if the cost of buying is less than the cost of producing. b. The company should buy if the incremental revenue exceeds the incremental costs. c. The company should buy as long as total revenue exceeds present revenues. d. The company should buy assuming no additional fixed costs are incurred. Galaxy Company has old inventory that cost $15,000. Its scrap value is $20,000. The inventory could be sold for $50,000 if manufactured further at an additional cost of $15,000. What should Galaxy do? a. Sell the inventory for $20,000 scrap value. b. Manufacture further and sell it for $50,000. c. Hold the inventory at its $15,000 cost. d. none of the above. 20. Han Corporation produces hair brushes, which it sells for $20 per unit. Variable costs is $6 per unit. During December, 1,000 units were sold. Fixed costs for December were $5.60 per unit for a total of $5,600 for the month. If variable costs decrease by 10%, what happens to the break-even level of units per month for Han? a. It is 10% higher than the original break-even point. b. It decreases about 16 units. c. It decreases about 40 units. d. It depends on the number of units the company expects to produce and sell