Sam Is Offering a New Product Which Has a Variable

question 382

Multiple Choice

Sam is offering a new product which has a variable cost per unit of $26.08 and total fixed costs of $42,714. What is the selling price of this product if the cash break-even quantity is 6,300 units?

• A) $29.47
• B) $29.63
• C) $32.10
• D) $32.86
• E) $33.07

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Definitions:

Heuristic Errors

Heuristic errors refer to mistakes made in judgment or decision-making processes due to the use of simple and efficient rules (heuristics) that the human brain uses to process information quickly but sometimes inaccurately.

Biases

A tendency to lean in a certain direction, either in favor of or against something, often without a neutral standpoint.

Stereotypes

Widely held but fixed and oversimplified images or ideas of a particular type of person or thing, often leading to prejudice and discrimination.

L Data

Life Data or L Data is information obtained from an individual's life history and real-world behavior, often used in personality research.