Use the Table Below to Answer the Following Questions) -Calculate the Variable Cost of Production

question 8

Multiple Choice

Use the table below to answer the following questions) .
Below is the profit model spreadsheet for the Lazarus Shoe Company producing their latest model of shoes for the month of January. $\begin{array}{|l|l|}\hline \begin{array}{l}\text { Profit Model for Lazarus } \\\text { Shoe Company for } \\\text { Tanuary }\end{array} & \text { All cost in } \$ \text { ) } \\\hline & \\\hline \text { Unit Price } & 47 \\\hline \text { Unit Cost } & 22 \\\hline \text { Fixed Cost for Production } & 350,000 \\\hline \text { Demand } & 40,000 \\\hline & \\\hline \text { Model } & \\\hline & \\\hline \text { Unit Price } & 47 \\\hline \text { Quantity Sold } & 38,000 \\\hline \text { Revenue } & \\\hline & \\\hline \text { Unit Cost } & 22 \\\hline \text { Quantity Produced } & 38,000 \\\hline \text { Variable Cost } & \\\hline \text { Fixed Cost } & 350,000 \\\hline & \\\hline \text { Profit } &\\\hline\end{array}$
-Calculate the variable cost of production.

• A) $1,786,000
• B) $836,000
• C) $600,000
• D) $1,436,000

Recognize the concept of product life cycle and market timing.

Acknowledge the significance of key resources in business startup and growth, particularly time, capital, and experience.

Understand the criteria that differentiate viable business opportunities from mere ideas.

Differentiate between service and product-based business models in terms of their operational intensity.

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Definitions:

Reciprocal Determinism

A concept in psychology stating that a person's behavior is both influenced by and influences their personal factors and environment.

Cycle of Rejection

A pattern where initial rejection leads to behaviors that increase the likelihood of further rejection, creating a self-perpetuating cycle.

Mistrust

A lack of trust or confidence in someone or something, often stemming from negative experiences or perceptions.

Personality Traits

Stable characteristics that define an individual's behaviors, thoughts, and feelings, distinguishing one person from another.