Ouelette Corporation's Relevant Range of Activity Is 3,000 Units to 7,000

question 8

Multiple Choice

Ouelette Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

• A) $15,000
• B) $22,800
• C) $7,800
• D) $25,800

---

Definitions:

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critical theories about capitalism and advocacy for socialism.

Marginal Revenue Product

The Marginal Revenue Product indicates the additional revenue generated from employing one more unit of a resource, such as labor or capital.

Acre of Land

An Acre of Land is a unit of area measurement used in the U.S. and British Imperial systems, equivalent to 4,840 square yards or about 4,047 square meters.

Determinant

A factor or variable that causes a change in an economic model or equation, influencing outcomes like price or quantity.