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

question 173

Multiple Choice

Rhome 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 5,000 units are sold, the total variable cost is closest to:

• A) $53,250
• B) $68,250
• C) $80,250
• D) $60,250

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Definitions:

Chlorine

A chemical element with symbol Cl and atomic number 17, a reactive halogen that is used as a disinfectant and in the manufacture of a wide range of products.

Sodium

A chemical element with symbol Na and atomic number 11, known for its role in nerve impulse transmission and muscle contraction.

Covalent Compound

A compound in which atoms are held together by covalent bonds; covalent compounds consist of molecules. Compare with ionic compound.

Methane

A colorless, odorless gas, CH4, that is the simplest alkane and a major component of natural gas, contributing to greenhouse gas emissions.