An 8 Year Project Is Estimated to Produce a Product

question 90

Multiple Choice

An 8 year project is estimated to produce a product with the following information: selling price = $80 per unit; variable costs are $65 per unit; fixed costs are $20,000; required return is 10%; initial investment = $200,000.Calculate the financial break-even.

• A)3,000
• B)3,833
• C)4,000
• D)4,833

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Definitions:

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, meaning everyone pays the same proportion of their income.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting lower-income individuals.

Interactional Justice

Refers to the quality of the interpersonal treatment people receive when a decision is implemented.

Procedural Justice

Refers to perceptions that the process used to determine the outcomes were fair.