Lunar Surf Boards Has Annual Fixed Costs of $5,000 with a Variable

question 28

Multiple Choice

Lunar Surf Boards has annual fixed costs of $5,000 with a variable cost of $10 per unit and a sales price of $20 per unit.Lunar expects to sell 1,000 units this year without much trouble.However,Lunar is concerned about the scenario that variable costs will increase 10% this year.If that happens,what will be Lunar's earnings before interest and taxes?

• A) $6,000
• B) $5,000
• C) $4,000
• D) none of the above

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Definitions:

Prenatal Hormones

Hormones present in the womb that play a significant role in the development of physical and behavioral characteristics of the fetus.

Chromosomes

Structures within cells that contain DNA and genetic information, playing a crucial role in inheritance and determining characteristics.

Sex and Gender

Distinct concepts where 'sex' typically refers to biological differences, and 'gender' relates to societal roles, behaviors, and identities.

Intersex Infants

Babies born with reproductive or sexual anatomy that doesn't fit typical definitions of male or female.