Chp 11 Quiz - Question 1 1. Variable costs can be defined...

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1. Variable costs can be defined as the costs that: Answer remain constant for all time periods. remain constant over the short run. vary directly with sales. are classified as non-cash expenses. are inversely related to the number of units sold. 0.1 points Question 2 1. A project has a unit price of $5,000, a variable cost per unit of $4,000, fixed costs of $17,000,000, and depreciation expense of $6,970,000. What is the accounting break-even quantity? Answer 6,970 units 10,030 units 17,000 units 21,470 units 23,970 units 0.1 points Question 3 1. Miller Mfg. is analyzing a proposed project. The company expects to sell 8,000 units, plus or minus 2 percent. The expected variable cost per unit is $11 and the expected fixed costs are $287,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $68,000. The tax rate is 32 percent. The sales price is estimated at $64 a unit, give or take 3 percent. What is the net income under the worst case scenario? Answer
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This note was uploaded on 07/31/2011 for the course FIN 550 taught by Professor Rajneeshsharma during the Summer '11 term at Saint Joseph's University.

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Chp 11 Quiz - Question 1 1. Variable costs can be defined...

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