Refer to the Stealth Software Inc -If the Software Had a Sales Price of $30 Per

question 36

Multiple Choice

Refer to the Stealth Software Inc. information below.
Stealth Software Inc.
Stealth Software Inc. has the following information available from last year for one of its software products:
$\begin{array}{lr}\text { Sales revenue } & \$ 30000 \\\text { Variable costs } & 4950 \\\text { Fixed costs } & 4000 \\\text { Net income } & \$ 21050\end{array}$
-If the software had a sales price of $30 per unit,what is the variable cost per unit?

• A) $165.00
• B) $ .20
• C) $ 25.05
• D) $ 4.95

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Definitions:

Expected Returns

The anticipated return on an investment based on historical data or probability-weighted scenarios.

Sensitivity Coefficients

Measures in sensitivity analysis that quantify how the output of a model changes in response to changes in input variables.

Regression Analysis

A statistical method for estimating the relationships among variables, often used to forecast future trends.

Historical Returns

The actual return that an investment or asset has generated over a specific past period.