Use the Information Below to Answer the Following Questions

question 111

Multiple Choice

Use the information below to answer the following questions.
Fact 11.2.1 GM to Cut Production and Jobs
General Motors will temporarily idle five U.S.assembly plants that build sedans and coupes,such as the Chevrolet Cruze,Cadillac CTS,and Chevy Camaro,as American motorists by the millions shift from passenger cars to utility vehicles and other light trucks.
Source: The Toronto Star,December 21,2016
-Refer to Fact 11.2.1.GM will start producing the Chevy Volt again when price is greater than

• A)average variable cost.
• B)total variable cost.
• C)average fixed cost.
• D)total fixed cost.
• E)total cost.

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Definitions:

Fixed Costs

Rephrased: Expenses that remain constant regardless of the company's level of production or business activity.

Trucking Department

A specialized division within a company responsible for the management and operation of trucking logistics, including transportation and delivery services.

Peak-Period Requirements

The increased demand or resources needed during the busiest or most active times for a business or service.

Variable Cost

An expense that fluctuates in tandem with the levels of output or sales, such as raw materials and direct labor costs.