Information About Cheng Corporation Is as Follows -Refer to the Figure

question 108

Multiple Choice

Information about Cheng Corporation is as follows:
$\begin{array}{lrr}&20 \times 1 & 20 \times 2\\\text { Output (units) } & 14,000 & 15,000 \\\text { Selling price per unit } & \$ 16 & \$ 16 \\\text { Input quantities: } & & \\\quad \text { Materials (kg) } & 1,750 & 1,900 \\\text { Labour (hours) } & 1,400 & 1,525 \\\text { Input prices: } & & \\\quad \text { Materials (per kg) } & \$ 3 & \$ 4 \\\quad \text { Labour (per hour) } & \$ 6 & \$ 7\end{array}$
-Refer to the figure.What is the partial operational measure for labour for 20X1?

• A)1.00
• B)1.25
• C)2.50
• D)3.20

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Definitions:

Effective Tax Rate

The average percentage of one's total income paid in taxes, factoring in all deductions and credits.

Capital Structure

The mix of a company's debt, equity, and other sources of financing used to fund its operations and growth.

Cost of Capital

The minimum return that a business needs to generate on its projects to preserve its marketplace value and draw in financing.

Flotation Costs

Expenses incurred by a company in issuing new stocks or bonds, including underwriting, legal, and registration fees.