Taylor and Ashcroft Is Reviewing a New Product with Labour

question 75

Multiple Choice

Taylor and Ashcroft is reviewing a new product with labour cost of $16.40 per unit, raw materials cost of $41.65 a unit, and fixed costs of $164,000 a year. Sales are projected at 85,000 units per year over the 3-year life of the product. What is the amount of the total variable costs per year?

• A) $3,540,250
• B) $3,780,500
• C) $4,221,500
• D) $4,770,250
• E) $4,934,250

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Definitions:

Mobility

The ability to move or be moved freely and easily, which can refer to physical movement, socioeconomic mobility, or migrations.

Posture

Refers to the way in which an individual holds their body when standing or sitting, highlighting the importance of physical alignment for health and well-being.

Tai Chi

A martial art known for its slow, flowing movements and health benefits, including stress reduction and improvement in balance and flexibility.

Stumbling

To trip or momentarily lose one's balance while walking or running, often resulting in a recovery or fall.