Webster United Is Considering Adding a New Product to Their

question 206

Multiple Choice

Webster United is considering adding a new product to their lineup. The company expects to sell 15,000 units, give or take 3 percent, of this item. The expected variable cost per unit is $12 and the expected total fixed cost is $21,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $22,000. The tax rate is 35 percent. The sale price is estimated at $15 a unit, give or take 2 percent.

What is the earnings before interest and taxes under the best case scenario?

• A) $17,255
• B) $17,772
• C) $18,305
• D) $18,824
• E) $19,355

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Definitions:

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.

Aversive Events

Unpleasant or undesirable occurrences that an individual seeks to avoid or minimize.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed, theorized to contribute to feelings of depression and anxiety.

Emotional Troubled

Experiencing difficulties and disturbances in one's emotional wellbeing, which may impact day-to-day functioning.