CC's Is Analyzing a Project with Anticipated Annual Sales of 3,620

question 90

Multiple Choice

CC's is analyzing a project with anticipated annual sales of 3,620 units,± 5 percent; a sales price of $24,± 2 percent; variable costs per unit of $14.60,± 4 percent; and annual fixed costs of $12,900,± 1 percent.What will be the annual total variable costs given a sensitivity analysis using a variable cost of $16 a unit?

• A)$53,470
• B)$54,900
• C)$55,500
• D)$57,920
• E)$61,050

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Definitions:

Pay-As-You-Go

A payment model where clients only pay for the services or resources they use rather than a fixed subscription fee.

Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold, facilitating the transfer of wealth and the allocation of resources.

Social Entrepreneurs

Individuals who pursue innovative solutions to social problems with the goal of creating social value rather than focusing on profit.

Traditional Nonprofits

Organizations that operate for the benefit of the public or a specific group of individuals, without seeking to generate profits for owners or shareholders.