Given the Cost Formula Y = $23,000 + $8X, Total

question 271

Multiple Choice

Given the cost formula Y = $23,000 + $8X, total cost at an activity level of 7,000 units would be:

• A) $33,000
• B) $79,000
• C) $23,000
• D) $56,000

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Definitions:

Analysis

This refers to the detailed examination and evaluation of data, facts, or financial figures to break down complex materials into smaller, understandable components, often for decision-making purposes.

Internal Rate of Return

A calculation used to estimate the profitability of potential investments, representing the discount rate at which the net present value of costs and benefits of a project are equal.

Minimum Acceptable Rate

The lowest return on an investment that a manager or investor is willing to accept, often based on risk assessment or alternative investment opportunities.

Project Acceptance

The process of approving a proposed project based on analysis of its feasibility and alignment with organizational goals.