Watson Limited Has the Following Cost Estimates: Variable Cost Per

question 28

Multiple Choice

Watson Limited has the following cost estimates: variable cost per unit is $22, total fixed costs are $64 000 and the projected sales price is $30 each. The new accountant suggests that fixed costs can be reduced by $6 000. If so, how many units must be sold to produce a profit of $80 000?

• A) 18 000
• B) 18 750
• C) 17 250
• D) 10 000

---

Definitions:

Noninvasive Technique

A noninvasive technique is a method used in medicine or research that does not involve entering the body or breaking the skin, making it risk-free and painless for the patient.

Cortical Tissue

The layer of tissue that makes up the outer layer of the brain's cerebrum, involved in many complex brain functions including memory, attention, perceptual awareness, thought, language, and consciousness.

Golgi Stains

A silver staining technique that allows for the visualization of individual neurons and their dendritic structures, crucial for understanding neural connectivity and structure.

Nissl Stains

A staining technique used to highlight neuron cell bodies by staining the clusters of ribosomes and rough endoplasmic reticulum, aiding in the study of cytoarchitecture in the nervous system.