Elements Utensils Has the Following Cost Estimates: Variable Cost Per

question 55

Multiple Choice

Elements Utensils has the following cost estimates: variable cost per unit is $9, total fixed costs are $58 000 and the projected sales price is $13 each. The new accountant suggests that fixed costs can be reduced by $8000. If so, how many units must be sold to produce a profit of $130 000?

• A) 13 846
• B) 32 000
• C) 45 000
• D) 47 000

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Definitions:

Eminent Domain

The right of a government or its agent to expropriate private property for public use, with compensation.

Inherent Power

The authority possessed by a sovereign state or government without needing to be granted by a law, deriving from the very nature of the government's existence.

Government

The organization, or group of people governing an organized community, often a state, and responsible for the creation and enforcement of laws.

Governmental Classification

The organization or categorization of information, individuals, or entities by a government based on certain criteria.