A Project Has Projected Values Of: Unit Sales = 1,650

question 2

Multiple Choice

A project has projected values of: unit sales = 1,650, price per unit = $19, variable cost per unit = $7, fixed costs per year = $4,700.The depreciation is $1,100 a year and the tax rate is 34 percent.What effect would a decrease of $1 in the variable cost per unit have on the operating cash flow?

• A)-$8.58
• B)-$1,089
• C)-$912
• D)$1,089
• E)$912

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Definitions:

Presidential Election

A process in which citizens or their elected representatives vote to select the president of a country.

Federalist Party

A political party in the early United States that favored a strong central government and a loose interpretation of the Constitution.

Thomas Jefferson

The third President of the United States (1801–1809), principal author of the Declaration of Independence (1776), and an influential Founding Father known for his promotion of the ideals of republicanism.

Federal Power

The authority and capabilities possessed by the federal government, as distinguished from the powers held by state or local governments.