Danielle Sells a Single Product at $20 Per Unit

question 64

Multiple Choice

Danielle sells a single product at $20 per unit. The firm's most recent income statement revealed unit sales of 100,000, variable costs of $800,000, and fixed costs of $400,000. If a $4 drop in selling price will boost unit sales volume by 20%, the company will experience:

• A) no change in profit because a 20% drop in sales price is balanced by a 20% increase in volume.
• B) an $80,000 drop in profit.
• C) a $240,000 drop in profit.
• D) a $400,000 drop in profit.
• E) None of the other answers is correct.

Grasp the genetic and epigenetic mechanisms involved in animal behavior and phenotype changes.

Identify the various duties and behaviors of social insects within a colony.

Recognize the benefits of group living and the concept of a selfish herd in animal behavior.

Understand the genetic basis for differing behaviors within a species.

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Definitions:

Cost of Retained Earnings

The rate of return that shareholders expect on the earnings that a company keeps and reinvests in its operations.

Risk Premium

The extra return expected by an investor for holding a risky asset rather than a risk-free asset.

Flotation Costs

The costs incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Equity Capital

Funds raised by a company in exchange for shares of ownership in the company.