Taylor and Ashcroft Is Reviewing a New Product with Labour

question 335

Multiple Choice

Taylor and Ashcroft is reviewing a new product with labour cost of $16.40 per unit, raw materials cost of $41.65 a unit, and fixed costs of $164,000 a year. Sales are projected at 85,000 units per
Year over the 3-year life of the product. What is the amount of the total variable costs per year?

• A) $3,540,250
• B) $3,780,500
• C) $4,221,500
• D) $4,770,250
• E) $4,934,250

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Definitions:

Separation of Powers

The division of a state's government into branches, each with separate, independent powers and responsibilities, to prevent abuse of power and to provide a system of checks and balances.

Checks and Balances

A system in government where different branches are empowered to prevent actions by other branches and are induced to share power, maintaining a balance.

Civil Liberties

Individual rights protected by law from unjust governmental or other interference.

Three-Fifths Compromise

A compromise reached during the 1787 United States Constitutional Convention that counted three out of every five slaves as a person for the purposes of taxation and representation in Congress.