Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$5.40Direct labor$3.55Variable manufacturing overhead$1.70Fixed manufacturing overhead$3.00Fixed selling expense$0.60Fixed administrative expense$0.40Sales commissions$1.00Variable administrative expense$0.40If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

A. $18,000
B. $12,000
C. $13,500
D. $15,000


Answer: B

Business

You might also like to view...

Which statement does not support the claim that an unconditioned ethical directive such as the one the economic model of corporate social responsibility demands of business management is inappropriate for utilitarian theory?

A. It is claimed that once market failures are adequately addressed by the government, business just needs to obey the law that addressed them. Business, however, has the ability to inappropriately influence government policy and the law. B. Markets can work to prevent harm only by first-hand experience with harms that have to occur before they can be remedied. C. Business has the ability to influence consumers' desires by helping shape those desires through advertising. D. A more precise formulation of a utilitarian-based principle would be to maximize profit whenever doing so produces the greatest good for the greatest number, with the proviso that managers must consider the impact a decision will have in many ways other than merely financial.

Business

The defendant in a criminal trial may be present at the open jury sessions. The defendant may not attend the closed jury sessions

Indicate whether the statement is true or false.

Business

What is a digital dashboard, and why are they becoming an increasingly popular tool?

What will be an ideal response?

Business

Dependability is not as important to a buyer as is absolute length of lead time

Indicate whether the statement is true or false

Business