Use the Information Below to Answer the Following Question(s)

question 34

Multiple Choice

Use the information below to answer the following question(s) .
Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant to be 100,000 units at $4.00/unit. Below is a listing of estimated expenses:

A European firm was contracted to sell the product and will receive a commission of 13% of the sales price. No U.S. home office expenses will be allocated to the new facility.
-The variable cost per unit for Veron Corporation is

• A) $1.28.
• B) $1.62.
• C) $0.76.
• D) $0.86.

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Definitions:

Fraudulent Means

The use of deception, cheating, or manipulation with the aim of gaining an unfair advantage or causing harm to another party.

Withdraw From Deal

The act of backing out or cancelling an agreement before it is completed or finalized.

Breach Of Contract

The failure, without legal excuse, of a promisor to perform the obligations of a contract.

Fully Insured

This refers to a situation where an individual or entity has purchased enough insurance coverage to protect against anticipated losses or liabilities.