You Are Analyzing a Project and Have Developed the Following

question 48

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 33 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) -$823
• D) $1,742
• E) $2,600

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Definitions:

Irritations

Mild forms of discomfort or annoyance, often triggered by specific environmental or psychological stimuli.

Frustrations

are feelings of dissatisfaction and discomfort arising from obstacles that prevent one from achieving goals or satisfying needs.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more contradictory beliefs, ideas, or values at the same time.

Performance

The execution and completion of tasks or actions, often measured against preset standards of accuracy, speed, and efficiency.