Dake Corporation's Relevant Range of Activity Is 2,000 Units to 6,000

question 121

Multiple Choice

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

• A) $30,150
• B) $34,350
• C) $42,150
• D) $34,650

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Definitions:

Degree

An academic award conferred by a college, university, or other educational institution upon completion of a course of study.

Intermittent Reinforcement Schedule

A conditioning schedule where rewards or punishments (reinforcements) are given to a subject at irregular intervals.

Cash Incentive

A monetary reward given to stimulate behavior or performance, often used in work or promotional contexts.

Production Line

An arrangement of workers and machinery in a factory where the product being assembled passes consecutively from operation to operation until completed.