If Selling Price Per Unit Is $40,variable Costs Per Unit

question 97

Multiple Choice

If selling price per unit is $40,variable costs per unit are $25,total fixed costs are $20,000,the tax rate is 30%,and the company sells 5,000 units,net income is ________.

• A) $32,158
• B) $26,548
• C) $28,500
• D) $38,500

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Definitions:

Monte Carlo Simulation

A computational technique used to model the probability of different outcomes in a process that cannot easily be predicted due to the intervention of random variables.

Standard Distribution

Often refers to a probability distribution that is used to represent the dispersion of a set of data around its mean, typically assumed to be a normal distribution.

Monte Carlo Simulation

A computational algorithm that uses repeated random sampling to obtain numerical results, often used to model the probability of different outcomes in a process that cannot easily be predicted due to the intervention of random variables.

Demand During Lead Time

The total customer demand for a product during the period it takes to reorder and receive a new supply.