A Firm Is Reviewing a Project with Labour Cost of €8.90

question 5

Multiple Choice

A firm is reviewing a project with labour cost of €8.90 per unit,raw materials cost of €21.63 a unit,and fixed costs of €8,000 a month.Sales are projected at 10,000 units over the three-month life of the project.What are the total variable costs of the project?

• A)€216,300
• B)€297,300
• C)€305,300
• D)€313,300
• E)€329,300

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period of time.

Price

The amount of money expected, required, or given in payment for something.

Correlation Analysis

The study of how variables are related and the measurement of the strength and direction of this relationship.

Linear Relationship

A type of relationship between two variables where a change in one variable is associated with a proportional change in the other variable.