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

question 60

Multiple Choice

Barredo 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 4,000 units are sold, the variable cost per unit sold is closest to:

• A) $16.75
• B) $12.85
• C) $11.90
• D) $14.70

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Definitions:

Union Membership

The state of being a part of an organized association of workers created to protect and further their rights and interests.

Shirking

The behavior of employees who avoid or reduce work effort, underperforming in their job responsibilities, often when unsupervised or inadequately monitored.

Unionization Rate

The percentage of a particular population of workers that belongs to labor unions; alternatively, the percentage of a population of workers that is represented by one union or another in collective bargaining.

Food Workers

Individuals engaged in occupations related to the preparation, distribution, and serving of food, often in the hospitality and retail sectors.