You Are Analyzing a Project and Have Developed the Following

question 20

Multiple Choice

You are analyzing a project and have developed the following estimates: unit sales = 2,600,price per unit = $56,variable cost per unit = $39,fixed costs = $24,700.The depreciation is $15,800 a year and the tax rate is 35 percent.What effect would a decrease of $1 in the variable cost per unit have on the operating cash flow?

• A)-$2,600
• B)-$1,742
• C)-$912
• D)$1,690
• E)$2,600

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Definitions:

Spinoza

Baruch Spinoza, a philosopher of Portugese-Jewish origin, who proposed that God and Nature were two names for the same reality, leading to his excommunication from the Jewish community.

Substance

The essential reality of a thing or things that underlies the various properties and changes of properties. Its most common definitions: “that which is independent and can exist by itself”; “the essence of a thing which does not and cannot change.” In traditional metaphysics, substance is the same as “ultimate reality,” and the study of substance is that branch of metaphysics that studies reality—namely, ontology.

Independent

Describes a state or condition of being free from outside control or not depending on something else.

Cosmology

The study of such questions as how the universe came into being, the nature of space and time, and the dimensions of the universe.