Chocolate Company Is Considering the Production of a New Product

question 32

Multiple Choice

Chocolate Company is considering the production of a new product.Chocolate Company has the following data available:
$\begin{array}{ll}\text { Expected sales(units) over product life } & 15,000 \\\text { Variable production costs } & \$ 42 \text { per unit } \\\text { Variable selling costs } & \$ 16 \text { per unit } \\\text { Annual fixed production costs } & \$ 15,000 \\\text { Annual fixed selling costs } & \$ 5,000 \\\text { Research and development costs } & \$ 184,000\end{array}$
What is the total variable cost of the product over the product life cycle?

• A) $204,000
• B) $716,000
• C) $870,000
• D) $880,000

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Definitions:

Organism

An individual living entity that can react to stimuli, reproduce, grow, and maintain homeostasis.

Organizational Culture

The shared values, beliefs, and practices that characterize an organization and influence its members' behavior.

Cultural Studies

The study of everyday popular culture and systems of meaning. How do people construct meaningful lives in the context of systems of power and control?

Motivate Employees

The process of inspiring and encouraging organizational members towards achieving their personal and collective goals.