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Varvara68 [4.7K]
3 years ago
9

Multiple Choice Question Which of the following is the correct statement about variable costs? The variable cost per unit will i

ncrease when volume increases. The variable cost per unit will decrease when volume increases. The variable cost per unit does not change when volume changes.
Business
1 answer:
pantera1 [17]3 years ago
7 0

Answer:

The correct answer is letter "C": The variable cost per unit does not change when volume changes.

Explanation:

Variable costs are those that change according to the level of production. Typical examples of variable costs are labor hand costs and raw material costs. Though, it is important to differ the variable cost per unit from the total variable cost.

<em>When the volume increases, the variable cost per unit remains the same but the total variable cost increases or decreases depending on the change.</em>

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Your sister is thinking about starting a new business. The company would require $380,000 of assets, and it would be financed en
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Answer:

$51,300

Explanation:

Given that,

Assets require = $380,000

Return on the invested capital, ROE = 13.5%

ROE = Net income ÷ Total Equity

0.135 = Net income ÷ $380,000

0.135 × $380,000 = Net income

$51,300 = Net income

Therefore, the net income must be expected to warrant starting the business is $51,300.

Note: Since, all of the total assets are financed by the common stock.

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3 years ago
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tatiyna

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