Citizen Sells a Watch for $35 at a Variable Cost

question 41

Multiple Choice

Citizen sells a watch for $35 at a variable cost of $15 per unit and fixed cost of $1 million per annum. Recent recession has seen jump in material cost by $7. What is the change in profit due to recession if Citizen produces and sells 100 000 watches in a year?

• A) $1 000 000 decrease
• B) $700 000 decrease
• C) $300 000 decrease
• D) $800 000 increase
• E) $1 800 000 increase

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Definitions:

Race

A social construct used to categorize humans into large and distinct populations based on various factors such as ancestry, physical appearance, and cultural history.

Chesapeake Region

An area in the United States encompassing parts of Virginia and Maryland, notable for its early role in American colonial history.

Social Division

The segregation of society into groups based on socioeconomic, racial, ethnic, or other distinctions, often leading to inequality and tension.