Ryan Industries Is Considering a Project with a Discounted Payback

question 89

Multiple Choice

Ryan Industries is considering a project with a discounted payback just equal to the project's life. The projections include a sales price of $12,variable cost per unit of $9,and fixed costs of $5,000. The operating cash flow is $8,000. What is the break-even quantity?

• A) 1,900 units
• B) 2,679 units
• C) 3,250 units
• D) 4,000 units
• E) 4,333 units

Understand the application of leadership theories in real-world scenarios.

Understand the concept of social psychology and the impact of social influences on human behavior.

Recognize the natural human tendency to seek information and support from others.

Appreciate the significance of consumer psychology in determining value from purchases.

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Definitions:

Insurance Policy

A contract between an insurer and a policyholder that specifies the terms under which the insurer agrees to compensate the policyholder for loss caused by specific events.

Declaratory Judgment Action

A legal procedure wherein the court determines the rights of parties without ordering any specific action or awarding damages.

Subrogation Action

A legal action where an insurer seeks to recover the amount of an insurance claim paid to the insured from the party responsible for causing the loss.

Indemnity Action

A legal action seeking compensation for damages or loss from another party as recompense for harm suffered.