A Project Has Earnings Before Interest and Taxes of $7,318,fixed

question 68

Multiple Choice

A project has earnings before interest and taxes of $7,318,fixed costs of $13,480,a selling price of $14 a unit,and a sales quantity of 7,500 units.Depreciation is $2,200.What is the variable cost per unit?

• A)$10.56
• B)$12.08
• C)$8.87
• D)$10.93
• E)$11.24

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Definitions:

Inspect Goods

The process of examining and verifying the quality, condition, and compliance of products with agreed-upon standards before acceptance.

Conforming Goods

Products that meet the specifications and standards mentioned in a contract of sale.

Perfect Tender Rule

A principle in sales law that allows a buyer to reject goods if they do not conform exactly to the terms of the contract, regardless of the significance of the nonconformity.

Substantial Impairment

A significant reduction or weakening in capacity, value, or function.