The Fixed Cost in Manufacturing a Single LED Monitor Is

question 3

Multiple Choice

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be ________.

• A) $60,000
• B) $200,000
• C) $260,000
• D) $420,000
• E) $500,000

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Definitions:

Nonconforming Goods

Goods delivered under a sales contract that fail to meet the quality or specifications agreed upon by the seller and buyer.

Cure Defects

The action of rectifying or fixing flaws or deficiencies in a product, service, or legal document.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize laws across states.

Usage of Trade

Established customs and practices that are widely accepted in a particular industry or trade, affecting how contracts are interpreted and enforced.