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

question 24

Multiple Choice

Jupitor 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.Jupitor expects to sell 1,000 units this year without much trouble.However,Jupitor is concerned about the scenario that all costs will increase 10% this year.If that happens,what will be Jupitor's earnings before interest and taxes?

• A) $6,000
• B) $5000
• C) $4,000
• D) $3,500

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Definitions:

Normally Distributed

Describes a distribution of data that follows the normal distribution curve, characterized by a bell shape and equal mean, median, and mode.

Life Expectancy

The average period that an organism, especially a human, is expected to live based on demographic factors.

Mean

The arithmetic average of a set of numbers, found by dividing the sum of these numbers by the count of the numbers in the set.

Function

A relationship between a set of inputs and a set of permissible outputs, where each input is related to exactly one output.