Answer the Following Questions Using the Information Below

question 173

Multiple Choice

Answer the following questions using the information below:
Assume the following cost information for Fernandez Company:

-The Marietta Company has fixed costs of $40,000 and variable costs are 75% of the selling price. To realize profits of $10,000 from sales of 50,000 units, the selling price per unit:

• A)must be $1.00
• B)must be $1.33
• C)must be $4.00
• D)is indeterminable

Understand the concept and valuation of goodwill in business acquisitions.

Grasp the fundamentals and applications of discounted cash-flow analysis.

Comprehend the importance and focus areas of the income statement method in business valuation.

Acknowledge the significance of human resources in the acquisition or sale of a business.

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Definitions:

Island Arcs

Curved chains of volcanic islands located along convergent tectonic plate boundaries, typically with deep ocean trenches on the convex side.

Abyssal Plains

Very flat, deep-sea floors found at depths between 3,000 and 6,000 meters, making up a large portion of the ocean's basin.

Oceanic Fracture Zones

Linear oceanographic features caused by the movement of tectonic plates, characterized by significant variations in depth and topography.

Seafloor

The bottom of an ocean or sea, composed of various geological features including ridges, valleys, plains, and trenches, shaped by processes like volcanic activity, sediment deposition, and tectonic movements.