Consider a Three-Year Project with the Following Information: Initial Fixed

question 79

Multiple Choice

Consider a three-year project with the following information: initial fixed asset investment = $770,000; straight-line depreciation to zero over the three-year life; zero salvage value; price = $34.99; variable costs = $23.16; fixed costs = $245,000; quantity sold = 94,500 units; tax rate = 40 percent.How sensitive is OCF to an increase of one unit in the quantity sold?

• A)$7.10
• B)$7.73
• C)$8.67
• D)$9.97
• E)$11.83

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Definitions:

Permissive Items

May be included in collective bargaining if both parties agree.

Businesslike Approach

This term refers to dealing with matters or conducting oneself in a professional, efficient, and methodical manner.

Contingent Workers

Workers who are hired on a temporary basis or on a contract that differs from a permanent employment, often without the same level of job security or benefits.

Antiunionization Strategies

Techniques employed by some employers to prevent or minimize union presence and influence within their organization.