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A Project Has Earnings Before Interest and Taxes of $6,500

Question 342

Multiple Choice

A project has earnings before interest and taxes of $6,500, fixed costs of $40,000, a selling price of $12 a unit, and a sales quantity of 10,000 units. Depreciation is $8,500. What is the variable cost per unit?


A) $6.25
B) $6.50
C) $6.75
D) $7.00
E) $7.25

Correct Answer:

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