A Project Has Earnings Before Interest and Taxes of $14,600,fixed

question 45

Multiple Choice

A project has earnings before interest and taxes of $14,600,fixed costs of $52,000,a selling price of $29 a unit,and a sales quantity of 16,000 units.All estimates are accurate within a plus/minus range of 3 percent.Depreciation is $12,000.What is the base case variable cost per unit?

• A)$22.16
• B)$23.84
• C)$24.09
• D)$24.23
• E)$25.18

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Definitions:

Resource Allocation

The process of distributing available resources among various projects, tasks, departments, or entities within an organization.

Formal Rules

Explicitly stated regulations or guidelines that dictate the behavior or operations within an organization or society.

Inoculation Effect

A psychological phenomenon where a belief becomes stronger when exposed to counterarguments in a weak fashion.

Impression Management

The effort to control or influence the perceptions of others about a person, object, or event.