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

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Definitions:

Uniformly Distributed

Describes a distribution in which all outcomes are equally likely, showing no preference for any interval of values within the range of the distribution.

Assembling Product

The process of combining various components or elements to create a finished product.

Probability

The probability of an event happening, quantified by a number ranging from 0 to 1.

Uniformly Distributed

Describes a type of distribution where all outcomes are equally likely over a specific interval.