Use the Following Information for Following Questions

Bijoux

question 17

Multiple Choice

Use the following information for following questions

Bijoux Ltd manufactures and sells a single product. This product has the following operational data:

$\begin{array}{lr}\text { Unit sales price } & 50 \\\text { Variable manufacturing cost per unit } & 25 \\\text { Fixed manufacturing costs } & 72,000 \\\text { Variable selling cost per unit } & 2 \\\text { Fixed selling costs } & 57,000 \\\text { Marginal tax rate } & 20 \%\end{array}$
-Calculate the number of units required to achieve a pre-tax profit of $125 000.

• A) 7 479
• B)10 160
• C) 5 435
• D) 11 044

Recognize the difference between systematic (market) risk and unsystematic (business-specific) risk.

Learn how to calculate the risk premium for individual securities.

Comprehend the assumptions and limitations of the Capital Asset Pricing Model (CAPM).

Interpret beta values and their indication of a security's systematic risk level.

---

Definitions:

Ego

In psychoanalytic theory, it represents the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Ego

The Freudian construct representing the self, or the part of one's personality that is involved in decision making and reality testing.

Instinctual Demands

Basic, innate urges or drives that motivate behavior, such as hunger, thirst, or the need for safety.