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

question 75

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:

Price Volatile

Refers to sudden and significant price changes within short periods, often seen in markets for commodities or securities.

Marketing Mix

The factors that a business can change in selling products to customers—product, place, price, and promotion.

Market Will Bear

Refers to the maximum price that consumers are willing to pay for a product or service in the market.

Perceived Value

The value that a customer believes a product or service has, which may not necessarily reflect its actual price or inherent value.