A Project Has Earnings Before Interest and Taxes of $5,750

question 182

Multiple Choice

A project has earnings before interest and taxes of $5,750, fixed costs of $50,000, a selling price of $13 a unit, and a sales quantity of 11,500 units. Depreciation is $7,500. What is the variable cost per
Unit?

• A) $6.75
• B) $7.00
• C) $7.25
• D) $7.50
• E) $7.75

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Definitions:

Microorganisms

Tiny living organisms that can only be seen with a microscope, including bacteria, viruses, fungi, and protozoa.

Louis Pasteur

A French biologist, microbiologist, and chemist renowned for his discoveries of the principles of vaccination, microbial fermentation, and pasteurization.

Ayurvedic Medicine

Traditional healing system of India that addresses mental and spiritual well-being and physical health. Ayurveda identifies three types of energies that are present in all things: vata, pitta, and kapha, and believes that imbalances in any of these areas can cause disease.

Vata, Pitta, Kapha

Fundamental principles in Ayurveda representing different body types and constitutions.