A Firm Is Reviewing a Project with a Labor Cost

question 18

Multiple Choice

A firm is reviewing a project with a labor cost of $18.90 per unit,raw materials cost of $21.63 a unit,and fixed costs of $8,000 a month.Sales are projected at 7,200 units total for the 3-year life of the project.What are the total variable costs per year?

• A)$106,300
• B)$99,300
• C)$97,272
• D)$103,300
• E)$109,300

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Definitions:

Specific Tasks

Defined actions or duties assigned to individuals or groups aimed at achieving a particular goal.

Level of Commitment

The degree to which an individual or group is dedicated or devoted to a task, cause, or relationship.

Crisis Intervention

A method of offering immediate, short-term help to individuals who experience an event that generates emotional, mental, physical, and behavioral distress.

Precrisis Personality

The characteristics and behavior patterns of an individual before encountering a significant stressor or crisis.