Exhibit 22-2 -Refer to Exhibit 22-2.The Dollar Amounts That Go in Blanks

question 67

Multiple Choice

Exhibit 22-2

-Refer to Exhibit 22-2.The dollar amounts that go in blanks (A) and (B) are,respectively,

• A) $30.00 and $40.00.
• B) $3.33 and $2.50.
• C) $1.00 and $0.75.
• D) $10.00 and $10.00.
• E) $6.67 and $5.00.

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Definitions:

Service Company

A business entity that provides intangible products or services to customers rather than physical goods.

Fixed And Variable Cost

Fixed and Variable Cost are two types of costs incurred by businesses; fixed costs do not change with the level of production or service, while variable costs vary directly with the level of production or service.

Planning Budget

A budget created at the beginning of the budgeting period that is valid only for the planned level of activity.

Oil Well Service Company

A business that provides a variety of services to the oil industry, including drilling, maintenance, and repair of oil wells.