A Project Has Earnings Before Interest and Taxes of $6,500

question 396

Multiple Choice

A project has earnings before interest and taxes of $6,500, fixed costs of $40,000, a selling price of $12 a unit, and a sales quantity of 10,000 units. Depreciation is $8,500. What is the variable cost per
Unit?

• A) $6.25
• B) $6.50
• C) $6.75
• D) $7.00
• E) $7.25

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Definitions:

Consumption Addiction

A behavioral condition where an individual becomes excessively preoccupied with purchasing and using goods or services.

Gambling

The act of wagering something of value on an event with an uncertain outcome, often involving risk in hope of gaining something of greater value.

Anticonsumption

The deliberate decision to reduce or reject the consumption of certain products or services based on personal values, environmental concerns, or ethical reasons.

Graffiti

Writing or drawings made on a wall or other surface, usually without permission and within public view.