Based on a Predicted Level of Production and Sales of 12,000

question 101

Multiple Choice

Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be:

• A) $10,000 of fixed costs and $72,000 of variable costs.
• B) $10,000 of fixed costs and $90,000 of variable costs.
• C) $12,500 of fixed costs and $90,000 of variable costs.
• D) $12,500 of fixed costs and $72,000 of variable costs.
• E) $10,000 of fixed costs and $81,000 of variable costs.

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Definitions:

Cholesterol

A type of lipid molecule that is crucial for the formation of cell membranes and serves as a precursor for the synthesis of certain hormones and vitamins.

Steroid

A type of organic molecule with a characteristic structure consisting of four fused rings, playing various roles in the body including as components of cell membranes and as signaling molecules.

Polymers

Large molecules composed of repeated subunits, which can be natural, like DNA, or synthetic, like plastic.

Monomers

The basic building block units of polymers, which can bind chemically to other monomers to form complex structures.