A Project Has Earnings Before Interest and Taxes of $24,900

question 417

Multiple Choice

A project has earnings before interest and taxes of $24,900, fixed costs of $48,700, a selling price of $16 a unit, and a sales quantity of 24,500 units per year. Annual depreciation is $14,600. What is the variable cost per unit?

• A) $12.40
• B) $12.50
• C) $12.60
• D) $12.70
• E) $12.80

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Definitions:

Frustration-aggression Hypothesis

A psychological theory suggesting that the occurrence of aggressive behavior arises when individuals are blocked from achieving a goal, leading to frustration which then results in aggression.

Physiological Measurements

Assessments of biological functions, such as heart rate and blood pressure, used to study body responses under various conditions.

Polygraph Test

A device or procedure that records physiological responses such as blood pressure, pulse, and skin conductivity to determine whether someone is telling the truth.

Guilty-knowledge Test

A psychological assessment used to determine whether an individual has knowledge only a guilty person could have, typically in criminal investigations.