One of Matthew Corporation's Competitors Has Learned That Matthew Has

question 175

Multiple Choice

One of Matthew Corporation's competitors has learned that Matthew has a total expense per unit of $1.50 at the 15,000 unit level of activity and total expense per unit of $1.45 at the 20,000 unit level of activity. Assume that the relevant range includes all of the activity levels mentioned in this problem.What would be the competitor's prediction of variable cost per unit for Matthew Corporation?

• A) $1.30
• B) $0.77
• C) $1.50
• D) $1.45

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Definitions:

Preventive Maintenance

Regular and systematic inspection, cleaning, and repair of equipment and facilities to prevent sudden failure and ensure efficient operation.

Reactive

Responding to changes or issues as they occur rather than anticipating and preparing for them in advance.

MTBF Distributions

Mean Time Between Failures distributions, a statistical measure used to describe the expected reliability or availability of a system over time.

Infant Mortality

The failure rate early in the life of a product or process.