A Project Has Expected Sales of 6,000 Units, a Selling

question 24

Essay

A project has expected sales of 6,000 units, a selling price of $54 a unit, variable costs equal to 62% of sales, fixed costs of $72,000, and depreciation of $13,500. Assume that total revenues and fixed costs change by 5% in a pessimistic situation. What would the pretax profits be, per year, if the pessimistic situation should occur? Show your computations.

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Definitions:

Client-Centred Therapy

Client-Centred Therapy is a psychotherapeutic approach developed by Carl Rogers, emphasizing unconditional positive regard, empathy, and congruence in the therapist-client relationship to facilitate personal growth.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses through gradual exposure to the feared object or situation while maintaining relaxation.

Cognitive Therapy

A form of psychotherapy that aims to change negative patterns of thinking or behavior that are causing a person's emotional or mental problems.

Panic Disorder

A mental health condition characterized by sudden and repeated episodes of intense fear and physical symptoms, such as chest pain and heart palpitations.