Answer the Following Questions Using the Information Below:
Zephyr Apparels

question 23

Multiple Choice

Answer the following questions using the information below:
Zephyr Apparels is a clothing retailer. Unit costs associated with one of its products, Product DCT121, are as follows:
$\begin{array}{lr}\text { Direct materials } & \$ 70 \\\text { Direct manufacturing labor } & 20 \\\text { Variable manufacturing overhead } & 15 \\\text { Fixed manufacturing overhead } & 32 \\\text { Sales commissions (2\% of sales) } & 5 \\\text { Administrative salaries } & 16 \\\quad \text { Total } & \$ 158\end{array}$
-What are the period costs per unit associated with Product DCT121?

• A) $4
• B) $16
• C) $21
• D) $52

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Definitions:

Risk-Free Rate

The hypothesized return on an investment that carries no risk, often linked with government bonds.

Minimum Required Return

The lowest acceptable return on an investment, considering the risk and the cost of capital.

Expected Return

The anticipated return on an investment, taking into account the probabilities of each potential outcome.

Equity

The owners' stake in a company, represented by the amount of capital contributed plus any profits or minus any losses.