Citizen Sells a Watch for $35 at a Variable Cost

question 41

Multiple Choice

Citizen sells a watch for $35 at a variable cost of $15 per unit and fixed cost of $1 million per annum. Recent recession has seen jump in material cost by $7. What is the change in profit due to recession if Citizen produces and sells 100 000 watches in a year?

• A) $1 000 000 decrease
• B) $700 000 decrease
• C) $300 000 decrease
• D) $800 000 increase
• E) $1 800 000 increase

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Definitions:

Meningiomas

A type of brain tumor that arises from the meninges, the protective membranes that cover the brain and spinal cord.

Metastatic

Metastatic refers to the process by which cancer cells spread from the original (primary) site to other parts of the body, forming new (secondary) tumors.

Blood-Brain Barrier

A semipermeable barrier between the brain's blood vessels and the brain tissue that prevents certain substances from passing through.

Astrocytes

Star-shaped glial cells in the brain and spinal cord involved in biochemical support of endothelial cells and repair processes in the central nervous system.