A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The variable costs expected if the company produces and sells 16,000 units is:
A) $48,000.
B) $64,000.
C) $40,000.
D) $24,000.
E) $18,000.
D) $24,000.
Explanation: Variable costs per unit = $18,000/12,000 = $1.50 per unit
Expected variable costs for 16,000 units = $1.50 per unit × 16,000 units = $24,000.
You might also like to view...
Universal Services, Inc provides communication services to residential and business customers in rural and small urban communities primarily in northern England
The company offers services such as local and long distance voice, data, and Internet and broadband product offerings. The company, in an attempt to increase the attractiveness of its offerings, decides to provide special voice and data packages to its customers. The company designs eight different packs that offer varying voice and data benefits to customers. The company then asks a few of its customers to rank the packs in order to choose two best packs. Which of the following testing methods is being used in the above scenario? A) virtual reality testing B) conjoint analysis C) perceptual mapping D) product fabrication E) rapid prototyping
The going concern assumption is not applied to
a. companies that have sustained losses for the previous two years. b. companies about to file for bankruptcy. c. the partnership form of business. d. companies that have been in existence for less than a year.
A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the expense of the system as a whole
Indicate whether the statement is true or false
________ is one element that distinguishes good people who make ethically responsible decisions from good people who do not.
A. Moral imagination B. Normative myopia C. Inattentional blindness D. Change blindness