Based on Predicted Production of 12,000 Units,a Company Anticipates $150,000

question 163

Multiple Choice

Based on predicted production of 12,000 units,a company anticipates $150,000 of fixed costs and $123,000 of variable costs.The flexible budget amounts of fixed and variable costs for 10,000 units are:

• A)$125,000 fixed and $102,500 variable.
• B)$125,000 fixed and $123,000 variable.
• C)$102,500 fixed and $150,000 variable.
• D)$150,000 fixed and $123,000 variable.
• E)$150,000 fixed and $102,500 variablE.Fixed costs remain at $150,000

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Definitions:

Private Enterprise

Private enterprise is a business or industry that is managed and owned by private individuals or companies rather than by the state.

Production Possibility Frontier

A diagram demonstrating all possible maximal production outcomes for two commodities, subject to a combination of resources and various factors.

Bowed In

Describes a curve that is concave towards the origin, indicating increased efficiency or utility in some economics models.

Capital

Represents resources like funds, equipment, and properties used in the production of goods and services, contributing to the wealth of businesses or economies.