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:

Depth Cue

Visual information that helps perceive the distance or three-dimensional characteristics of an object, scene, or spatial layout.

Interposition

A visual cue for depth perception where one object partially blocks the view of another, indicating that the blocking object is closer to the viewer.

Flat Canvas

Usually refers to a smooth, flat surface used by artists for painting.

Linear Perspective

A depth cue that parallel lines converge in the distance at a vanishing point on the horizon line.