A Firm Is Reviewing a Project with a Labor Cost

question 90

Multiple Choice

A firm is reviewing a project with a labor cost of $8.90 per unit,raw materials cost of $21.63 a unit,and fixed costs of $8,000 a month. Sales are projected at 10,000 units over the three-month life of the project. What are the total variable costs of the project?

• A) $216,300
• B) $297,300
• C) $305,300
• D) $313,300
• E) $329,300

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Definitions:

Routine Request Format

A standard format used in communications to make requests that are ordinary and recurring within business operations.

Demanding Tone

A manner of communication that is authoritative and insists on immediate attention or compliance.

Compliance

The act of adhering to established guidelines, standards, or laws.

Routine Request

A standardized or commonly made inquiry or appeal for information, services, or action in the course of regular operations or transactions.