Assume Unicorn Company Has the Following Information Available If Variable Costs Increase to $65 Per Unit,what Is the l

question 116

Multiple Choice

Assume Unicorn Company has the following information available:
$\begin{array} { l } \text {Selling price per unit }&\$100\\ \text { Variable cost per unit }&\$45\\ \text { Fixed costs per year}&\$420,000\\ \text { Expected sales per year}&20,000 \text { units }\\\end{array}$

If variable costs increase to $65 per unit,what is the expected net income for one year?

• A) $280,000
• B) $700,000
• C) $880,000
• D) $1,580,000

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Definitions:

Liver

A large, vital organ in the body responsible for processes such as detoxification, metabolism, and the production of biochemicals necessary for digestion.

Thoracic Aorta

The section of the aorta that passes through the thoracic cavity, supplying oxygen-rich blood to the chest and upper abdominal area.

Thoracic Organs

Thoracic organs refer to those housed in the thoracic cavity, including the heart, lungs, esophagus, and major blood vessels.

Posterior Tibial Artery

A major artery of the lower leg, supplying blood to the posterior compartment of the leg and plantar surface of the foot.