The Following Are the Jensen Corporation's Unit Costs of Making

question 3

Multiple Choice

The following are the Jensen Corporation's unit costs of making and selling an item at its capacity of 1, 000 units per month: Present sales amount to 700 units per month.Fixed costs, both manufacturing and selling and administrative, are constant within the relevant range between 700 units and 1, 000 units.Direct labor is a variable cost. An order has been received from a customer in a foreign market for 100 units.The order would not affect current sales.The variable selling and administrative expenses would have to be incurred on this special order as well as for all other sales.How much will the company's profits be increased or (decreased) if it prices the 100 units at $7 each?

• A)$(30)
• B)$150
• C)$0
• D)$310

Recognize the formulas for computing statistical measures.

Understand the relationship between the average and other measures of central tendency.

Familiarity with the Greek alphabet as used in statistical notations.

Comprehend the distinctions between statistical measures such as the mean, median, and mode.

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Definitions:

Price of Capital

The cost of using capital to produce goods or services, often represented by the interest rate on borrowed funds or the opportunity cost of using one's own funds.

Future Profits

Expected earnings or gains in the future, often incorporating risk and uncertainty predictions.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual rate.

Interest Rate

The percentage of principal charged by the lender for the use of its money.