At 500 Units of Output,total Cost Is $35,000 and Total

question 40

Multiple Choice

At 500 units of output,total cost is $35,000 and total variable cost is $22,000.What does total fixed cost equal at 500 units?

• A) $57,000
• B) $900
• C) $13,000
• D) $34
• E) There is not enough information provided to answer this question.

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Definitions:

Press Setup

The preparation and adjustment of printing presses before a printing run.

Least-squares Regression

A statistical method used to estimate the relationship between variables, typically by minimizing the squares of the differences between observed and predicted values.

Least-squares Regression

Least squares regression is a statistical technique that identifies the optimal fit line by minimizing the sum of the squared differences between the actual and forecasted values.

Variable Component

The portion of costs or expenses that varies directly with changes in business activity level.