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A Project Has Earnings Before Interest and Taxes of $14,600,fixed

Question 45

Multiple Choice

A project has earnings before interest and taxes of $14,600,fixed costs of $52,000,a selling price of $29 a unit,and a sales quantity of 16,000 units.All estimates are accurate within a plus/minus range of 3 percent.Depreciation is $12,000.What is the base case variable cost per unit?


A) $22.16
B) $23.84
C) $24.09
D) $24.23
E) $25.18

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